Question
Selected financial data from Lead Company is provided below: Cash $62,000 Accounts Receivable $226,000 Inventory $275,000 Short-Term Investments $37,000 Land and Building $512,000 Current Portion
Selected financial data from Lead Company is provided below:
| Cash | $62,000 |
| Accounts Receivable | $226,000 |
| Inventory | $275,000 |
| Short-Term Investments | $37,000 |
| Land and Building | $512,000 |
| Current Portion of Long-Term Debt | $21,000 |
| Accounts Payable | $105,000 |
a) Calculate the quick ratio.
Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Quick Ratio = Answer
b) True or False? A quick ratio of 2.05 shows that the company is likely to meet its short-term cash obligations.
AnswerFalseTrue
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Quality Auditor Guide Theory And Application Made Easy
Authors: Warren Alford
1st Edition
1453899774, 978-1453899779
