Question

Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The current assets consisted of $62,000 Cash; $43,000 Accounts Receivable; and $88,000 of Inventory. The acid-test (quick) ratio is: [Round your answer to the nearest two decimal places...ex: 3.246

Answer 1

Answer:

.77

Explanation:

Calculation to determine what The acid-test (quick) ratio is

Using this formula

Quick Assets = Cash+Accounts Receivable/Current liabilities

Let plug in the formula

Quick Assets=$62,000+43,000/$137,000

Quick Assets=$105,000/$137,000

Quick Assets= .77

Therefore The acid-test (quick) ratio is .77