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

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Claire Arroyo

Business

4 June, 06:36

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

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Tamia Randolph · Answer 1

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