Siri Company has $20,000 in cash, $8,000 in marketable securities, $36,000 in current receivables, $18,000 in inventories, and $68,000 in current liabilities. The company's quick ratio is closest to

Question

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The quick ratio is calculated as (Cash + Marketable Securities + Current Receivables) / Current Liabilities. For Siri Company, this is ($20,000 + $8,000 + $36,000) / $68,000 = $64,000 / $68,000 = .94.

Siri Company Has $20,000 in Cash, $8,000 in Marketable Securities