1. The note receivable is due December 31, Year 3. Interest is due annually.
2. The note payable and related interest is due June 30, Year 3.
3. Deferred revenue will be recognized during the next year.
4. Management intends to put the building up for sale in December Year 2, and estimates it will take 90 days to sell.

Required: What is the Quick ratio at December 31, Year 1 (rounded to the third decimal)?

Credits $ Debits 25,000 136,000 29,000 117,000 3,500 $ 4,500 41,500 45,000 1,360,000 600,000 Account Title Cash Accounts receivable Raw materials Note receivable Interest receivable Interest payable Marketable securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net of amortization) Prepaid rent (for the next two years) Deferred revenue (next 12 months) Accounts payable Note payable Cash restricted for payment of note payable Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense 44,000 96,000 370,000 138,000 125,000 66,500 30,000 175,000 410,000 77,000 11,300 840,000 520,000 33,000