Based on the following data what is the quick ratio rounded

Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts payable $ 30,000 Accounts receivable 60,000 Accrued liabilities 5,000 Cash 40,000 Fixed assets 670,000 Intangible assets 50,000 Inventory 69,000 Long-term investments 80,000 Long-term liabilities 100,000 Prepaid expenses 1,000 Temporary investments 30,000 a. 4.3 b. 2.9 c. 3.7 d. 5.1

Solution

Quick assets=Accounts receivable+Cash+Temporary investments

(60000+40000+30000)=$130,000

Current liabilities=Accounts payable+Accrued liabilities

=(30000+5000)=$35000

Hence quick ratio=Quick assets/Current liabilities

=(130000/35000)

=3.7(Approx).