Quicksilver Co. has cash of $41,000; net Accounts Receivable of $51,000; short-term investments of $15,000 and inventory of $32,000. It also has $28,000 in current liabilities and $39,000 in long-term liabilities. The quick ratio for Quicksilver is:

Question

Quizplus · Accepted Answer

Quick ratio = (Cash + Short-term investments + Net accounts receivable) / Current liabilities 
= ($41,000 + $15,000 + $51,000) / $28,000 
= $107,000 / $28,000 
= 3.82