The financial statements of Midwest Tours are given below.
-Refer to the financial statements of Midwest Tours.The firm's quick ratio for 2009 is __________.
A)1.71
B)0.78
C)0.85
D)1.56
E)none of the above

Question

The financial statements of Midwest Tours are given below. 
-Refer to the financial statements of Midwest Tours.The firm's quick ratio for 2009 is __________.
A)1.71 
B)0.78 
C)0.85 
D)1.56 
E)none of the above

Quizplus · Accepted Answer

Quick ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
Quick ratio for Midwest Tours in 2009 = (23,500 + 19,000 + 11,000) / 40,000 = 0.825
Therefore, the closest option is C) 0.85.

The Financial Statements of Midwest Tours Are Given Below