Erastic Company has $14,000 in cash,$8,000 in marketable securities,$34,000 in account receivable,$40,000 in inventories,and $42,000 in current liabilities.The company's current assets consist of cash,marketable securities,accounts receivable,and inventory.The company's acid-test ratio is closest to:

Question

Quizplus · Accepted Answer

Quick assets = Cash + Marketable securities + Accounts receivable
= $14,000 + $8,000 + $34,000 = $56,000
Acid-test ratio = Quick assets F1F1F1S1F1F1F10 Current liabilities = $56,000 F1F1F1S1F1F1F10 $42,000 = 1.33

Erastic Company Has $14,000 in Cash,$8,000 in Marketable Securities,$34,000 in Account