Calculating the Current Ratio and the Quick (or Acid-Test) Ratio

The Gridiron Company has current assets equal to $3,800,000. Of these, $1,200,000 is cash, $1,800,000 is accounts receivable, $500,000 is inventory, and the remainder is marketable securities. Current liabilities total $1,984,000.

Required:

Note: Round answers to two decimal places.

1. Calculate the current ratio. $

2. Calculate the quick ratio (acid-test ratio). $