Monika's gift barn has cash of $316, accounts receivable of $687, accounts payable of $709, and inventory of $2,108. what is the value of the quick ratio? .23 .45 .71 1.41 4.38
1.41
The quick ratio is the sum of assets that can be quickly liquidated divided by the liabilities. In this case, the assets are the cash of $316 and the accounts payable of $709. The inventory doesn't count since it can't be quickly converted to liquid assets. The liabilities are the accounts payable of $709. So let's do the math.
(316 + 687)/709 = 1003/709 = 1.41
So the result is 1.41
