Based on the above data,what is the quick ratio,rounded to one decimal point?
A)1.7
B)2.9
C)1.1
D)1.0

Question

Based on the above data,what is the quick ratio,rounded to one decimal point?
A)1.7 
B)2.9 
C)1.1 
D)1.0

Quizplus · Accepted Answer

Quick ratio is calculated by subtracting inventories from current assets and then dividing the result by current liabilities.

Quick Ratio = (Current Assets - Inventories)/Current Liabilities

From the given data,

Current assets = 22500 
Inventories = 4300 
Current liabilities = 10000

Quick Ratio = (22500 - 4300)/10000 = 1.7 (rounded to one decimal point)

Therefore, the correct option is A.

Based on the Above Data,what Is the Quick Ratio,rounded to One