McGraw-Hill Campus Secure McGraw-HillEducati Module 5 Healthy Liv . ? Squads wit

Question

McGraw-Hill Campus Secure McGraw-HillEducati Module 5 Healthy Liv . ? Squads with Ninja, x x New Tab https: /newconnect.mheducation.comfi Quiz 3 Help Save & Exit The following balance sheet information is provided for Greene Company for Year 2: 10 AssetS Cash Accounts receivable Inventory Prepaid expenses Plant and equipment, net of depreciation Land 4,400 10,550 14,200 1,000 18,900 12,800 Total assets Liabilities and Stockholders' Equity 61,850 Accounts payable Salaries payable Bonds payable (Due in ten years) Common stock, no par Retained earnings 2,430 8, 830 9,000 19,500 22,090 $61,850 Total liabilities and stockholders equity What is the company's quick (acid-test) ratio? (Round your answer to 2 decimal places.) Multiple Choice

Explanation / Answer

Acid test ratio = (cash + account receivable)/Current liabilities

= (4400+10550)/11260

Acid test ratio = 1.33

so answer is b) $1.33

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