Galaxy United, Inc.

2011 and 2012 Balance Sheets

2011 2012

Cash $17,000 $16,500

Accounts rec. $54,100 $56,700

Inventory $189,400 $186,700

Sub-Total $260,500 $259,900

Net Fixed assets $261,300 $282,100

Total $521,800 $542,000

Accounts Payable $128,600 $134,700

Long-term debt $147,500 $135,500

Common Stock $125,000 $140,000

Retained Earnings $120,700 $131,800

Total $521,800 $542,000

*The par value of the common stock is $1 per share.

Galaxy United, Inc.

2012 Income Statement

Net Sales $614,100

Less: Cost of goods sold 521,400

Less: depreciation 11,200

Earnings before interest and taxes $81,500

Less: Interest paid 10,100

Taxable income $71,400

Less taxes: 28,900

Net income $42,500

What is the Quick Ratio for 2012?

A..54

B.1.23

C.2.33

D..45