Lincoln Corp. - Income Statement as of December 31st, 20X4
Revenue	$	5,000
Cost of Goods Sold	$	3,200
Gross Profit	$	1,800
Operating expenses	$	1,350
Operating Profit	$	450
Loss on sale of equipment	$	20
Income tax expense	$	180
Profit for 20X4	$	250

Lincoln Corp. - Balance Sheet - December 31
	20X4			20X3
Assets
Cash	$	2,350		$	1,800
Accounts Receivable	$	450		$	1,000
Inventory	$	800		$	700
Prepaid Expenses	$	40		$	80
Equipment	$	2,500		$	1,500
Accumulated Depreciation	$	(1,350	)	$	(1,000	)
Total Assets	$	4,790		$	4,080
Liabilities & Shareholders Equity
Account Payable	$	680		$	350
Operating expenses payable	$	210		$	100
Income taxes payable	$	120		$	0
Dividends Payable	$	50		$	100
Long-term Notes Payable	$	300		$	70
Common shares	$	2,500		$	2,500
Retained Earnings	$	930		$	960
Total Liabilities & Shareholders' Equity	$	4,790		$	4,790

Additional Information for Lincoln Corp: 7) Operating expenses for 20X4 included depreciation for $500 8) Accounts payable relate exclusively to the purchase of inventory 9) Machine with a historical cost of $200 was sold at a loss of $20 10) A new machine was purchased during the year for $1,200 11) Dividends were declared 12) Long term notes payable were issued

The quick ratio at December 20X4 was:

Multiple Choice

• Between 0.22 and 0.87

• Equal or below 0.21

• Between 0.88 and 2.65

• Not enough data provided to calculate it

• Equal or above 2.66