The following balance sheet information is provided for Jordan Company for 2014:

Assets
Cash	$	4,600
Accounts receivable		10,750
Inventory		14,300
Prepaid expenses		1,100
Plant and equipment, net of depreciation		19,000
Land		12,900
Total assets	$	62,650
Liabilities and Stockholders' Equity
Accounts payable	$	2,490
Salaries payable		8,730
Bonds payable (Due in 2020)		9,500
Common stock, no par		19,000
Retained earnings		22,930
Total liabilities and stockholders' equity	$	62,650

What is the company's quick (acid-test) ratio? (Round your final answer to 2 decimal places.)

Answer: 1.37

Could you explain how? Thanks!