Quick ratio and current ratio (Learning Objective 7) 15–20 min.

Consider the following data:

Cash................................................

Short-term Investments..................

Net Receivables...............................

Total current assets ........................

Current Liabilities............................

$ 60,000 58,000 160,000 320,000 180,000 COMPANY A

$ 75,000 20,000 115,000 230,000 95,000 B

$25,000 14,000 26,000 80,000 45,000 C

$105,000 24,000 150,000 315,000 340,000 D

Requirements 1. Calculate the quick assets and the quick ratio for each company.

2. Calculate the current ratio for each company.

3. Which of the companies should be concerned about its liquidity?

AppendixLO1