how do you find quick ratios?

eBook Calculator Print Item Effect of Transactions on Current Position Analysis Cash Data pertaining to the current position of Lucray Industries Inc. are as follows: $425,000 Marketable securities 167,500 Accounts and notes receivable (net) 350,000 Inventories 700,000 Prepaid expenses 40,000 Accounts payable 180,000 Notes payable (short-term) 245,000 Accrued expenses 280,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ 977,500 b. Current ratio C. Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $75,000 1.4 X b. Paid accounts payable, $115,000 977,500 977,500 977,500 977,500 2.4 2.7 2.2 1.5 c. Purchased goods on account, $105,000 d. Paid notes payable, $110,000 Check My Work 2 more Check My Work uses remaining Previous eBook Calculator Print Item , , , each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $75,000 977,500 2.4 b. Paid accounts payable, $115,000. 977,500 C. Purchased goods on account, $105,000 977,500 d. Paid notes payable, $110,000 977,500 e. Declared a cash dividend, $140,000 837,500 977,500 1,202,500 2.7 1. Declared a common stock dividend on common stock, 555,000. Q. Borrowed cash from bank on a long-term note, $225,000 h. Received cash on account, $125,000. 1. Issued additional shares of stock for cash, $560,000. 977.500 1,537,500 977,500 1. Paid cash for prepaid expenses, $7,000. I 2.4 Feedback a. For working capital, subtract current liabilities from current assets. b. For the current ratio, divide current assets by current liabilities. c. For the quick ratio, divide quick assets by current liabilities. Quick assets are cash, marketable securities, and receivables. Set up T accounts and calculate new balances and new working capital after each transaction Set up T accounts and calculate new balances and new current ratio after each transaction Check My Work 2 more Check My Work uses remaining