medium · Financial Accounting financial-statement-analysis-ratios

Highland Foods reports Cash of $30,000, Marketable Securities of $10,000, Accounts Receivable of $50,000, and Inventory of $70,000.

If the firm has Accounts Payable of $45,000, Accrued Liabilities of $20,000, and Current Portion of Long-Term Debt of $15,000, what is the Quick Ratio (Acid-Test Ratio)?

  1. 2.00
  2. 1.38
  3. 1.13
  4. 0.50

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