The following items are reported on Denver Company's balance sheet:
$$\begin{array} { | l | r | }
\hline \text { Cash } & \$ 190,000 \
\hline \text { Marketable securities } & 160,000 \
\hline \text { Accounts receivable (net) } & 240,000 \
\hline \text { Inventory } & 350,000 \
\hline \text { Accounts payable } & 600,000 \
\hline
\end{array}$$
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

Question

The following items are reported on Denver Company's balance sheet:
​ $$\begin{array} { | l | r | } 
\hline \text { Cash } & \$ 190,000 \
\hline \text { Marketable securities } & 160,000 \
\hline \text { Accounts receivable (net) } & 240,000 \
\hline \text { Inventory } & 350,000 \
\hline \text { Accounts payable } & 600,000 \
\hline
\end{array}$$ ​
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

Quizplus · Accepted Answer

The Answer of The following items are reported on Denver Company's balance sheet:
​ $$\begin{array} { | l | r | } 
\hline \text { Cash } & \$ 190,000 \
\hline \text { Marketable securities } & 160,000 \
\hline \text { Accounts receivable (net) } & 240,000 \
\hline \text { Inventory } & 350,000 \
\hline \text { Accounts payable } & 600,000 \
\hline
\end{array}$$ ​
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.

The Following Items Are Reported on Denver Company's Balance Sheet