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20 October, 09:56

Duke's Garage has cash of $68, accounts receivable of $142, accounts payable of $235, and inventory of $318. What is the value of the quick ratio? Select one: a. 2.25 b ...53 c ...71 d ...89 e. 1.35

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  1. 20 October, 10:14
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    The correct answer is option (D).

    Explanation:

    According to the scenario, the given data are as follows:

    Cash (assets) = $68

    Accounts receivables (assets) = $142

    accounts payable (liabilities) = $235

    Inventory = $318

    So, we can calculate quick ratio by using following formula:

    Quick ratio = Assets / Liabilities

    = $68 + $ 142 / $235

    = $210 / $235

    = 0.89

    Hence, the value of quick ratio is 0.89.
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