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

Consider the following data:

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

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

Net Current Receivables..................

Total Current Assets........................

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

$ 95,000 85,000 120,000 325,000 200,000 COMPANY A

$ 67,000 30,000 113,000 224,000 255,000 B

$20,000 14,000 50,000 96,000 60,000 C

$103,000 53,000 145,000 368,000 260,000.

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