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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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