accounts payable 30000 accounts receivable 35000 accrued lia

accounts payable 30000
accounts receivable 35000
accrued liabilities 7000
cash 25000
intangible assets 40000
inventory 72000
long term investments 100000
long term liabilities 75000
marketable securities 36000
notes payable short term 20000
property plant and equip 400000
prepaid expense 2000

based on the above data what is the quick ratio rounded one decimal point?

Solution

Total current assets=(AR+Cash+Inventory+marketable securities+prepaid expenses)

=(35000+25000+72000+36000+2000)=$170,000

Total current liabiilties=(AP+Accrued liabilities+Notes payable)

=(30,000+7000+20,000)=$57000

Hence quick ratio=(Current assets-inventory-prepaid expenses)/Current liabiltiies

=(170,000-72000-2000)/57000

which is equal to

=1.7(Approx).