Mayfield Corporation has provided the following financial data:

-The company's acid-test (quick)ratio is closest to:
A) 1.90
B) 1.85
C) 2.65
D) 1.81

Question

Mayfield Corporation has provided the following financial data:
 
-The company's acid-test (quick)ratio is closest to:
A) 1.90 
B) 1.85 
C) 2.65 
D) 1.81

Quizplus · Accepted Answer

Acid-test (quick) ratio = Quick assets* ÷ Current liabilities
= $459,000 ÷ $253,000 = 1.81 (rounded)
*Quick assets = Cash + Marketable securities + Current receivables
= $223,000 + $0 + $236,000 = $459,000

Mayfield Corporation Has Provided the Following Financial Data