Current ratio and quick ratio (Learning Objective 2) 10–15 min.

In addition to the information from S12-6, assume that at the end of the year the cash balance on the balance sheet was $50,000 and current liabilities totaled $450,000.

Compute the following ratios at the end of the year:

1. Current ratio 2. Quick ratio 3. Cash conversion cycle.

AppendixLO1