The Crafter Company had the following assets and liabilities as of December 31,2012:

Determine the quick ratio for the end of the year (rounded to one decimal point).
A)6.7
B)13.0
C)4.2
D)3.5

Question

The Crafter Company had the following assets and liabilities as of December 31,2012:

Determine the quick ratio for the end of the year (rounded to one decimal point).
A)6.7 
B)13.0 
C)4.2 
D)3.5

Quizplus · Accepted Answer

The quick ratio is calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities. 
Therefore, the quick ratio of The Crafter Company is: 
($1,500 + $1,200 + $550) / $600 = 4.2 
The correct answer is C, with a quick ratio of 4.2.

The Crafter Company Had the Following Assets and Liabilities as of December