Liquidity ratio: Lionel Ltd has current assets of $623,122, including inventory of $241,990, and current liabilities of 378,454. What is the quick ratio?

Name: Liquidity ratio: Lionel Ltd has current assets of $623,122, including inventory of $241,990, and current liabilities of 378,454. What is the quick ratio?
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Quizplus · Accepted Answer

The quick ratio is calculated as (Current Assets - Inventory) / Current Liabilities. For Lionel Ltd, this is ($623,122 - $241,990) / $378,454 = $381,132 / $378,454 = 1.01.

Liquidity Ratio: Lionel Ltd Has Current Assets of $623,122, Including