Question

The following amounts were reported by Liquid Company in its most recent statement of financial position:...

The following amounts were reported by Liquid Company in its most recent statement of financial position:

Cash $47,100
Accounts receivable (net) 130,000
Short-term investments 21,000
Inventory 390,000
Prepaid insurance 34,500
Property, plant, and equipment (net) 960,000
Accounts payable 83,000
Wages payable 37,000
Income tax payable 65,000
Sales tax payable 10,000
Notes payable (due within one year) 88,000
Bank loan payable (due in three years) 50,000


(a)

Calculate the current ratio and quick ratio for Liquid Company. (Round answers to 2 decimal places, e.g. 15.25.)

Current ratio

 Enter current ratio rounded to 2 decimal places.

Quick ratio

 Enter quick ratio rounded to 2 decimal places.
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