Cypress Cruises has a cash balance of $80,000;short-term investments of $20,000;net receivables of $60,000;and inventory of $450,000.Current liabilities total $200,000.The quick ratio is:

Question

Quizplus · Accepted Answer

The quick ratio is calculated as (Cash + Short-term Investments + Net Receivables) / Current Liabilities. Here, it is ($80,000 + $20,000 + $60,000) / $200,000 = $160,000 / $200,000 = 0.80 to 1.

Cypress Cruises Has a Cash Balance of $80,000;short-Term Investments of $20,000;net