Question

Jessica's Boutique has cash of $40, accounts receivable of $66, accounts payable of $180, and inventory...

Jessica's Boutique has cash of $40, accounts receivable of $66, accounts payable of $180, and inventory of $150. What is the value of the quick ratio?

.37

2.01

1.42

.83

.59

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Homework Answers

Answer #1

Solution:- Given in Question-

Cash = $40,

Accounts Receivable = $66

Accounts Payable (Current Liabilities) = $180

Inventory = $150

Current Assets = Inventory + Cash + Accounts Receivable

Current Assets = $150 + $40 + $66

Current Assets = $256.

To Find Quick Ratio-

Quick Ratio =

Quick Ratio =

Quick Ratio =

Quick Ratio = 0.59

In Quick Ratio, can not consider Inventory Amount in Current Assets.

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