To increase the quick ratio from 1.2 to 2.0, Unga's Dress and Accessory Shoppe should:

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The quick ratio measures a company's ability to meet short-term obligations with its most liquid assets. The quick ratio formula is (current assets - inventory)/current liabilities. To increase the quick ratio, Unga's Dress and Accessory Shoppe needs to increase its quick assets or decrease its current liabilities. Option A suggests paying off $80 in short-term notes which would decrease current liabilities and thus increase the quick ratio. Options B and D address long-term debt and do not immediately impact the current ratio. Option C would increase current liabilities and therefore decrease the quick ratio.

To Increase the Quick Ratio from 1