Thomas Corp. has the following simplified balance sheet: Cash=$50,000, Inventory=150,000, Accounts receivable=100,000, Net fixed assets=200,000, Total Assets=$500,000, Current liabilities=$125,000, Long-term debt=175,000, Common equity=200,000, Total Liabilties and Equity=$500,000 . Sales for the year totaled $600,000. The company president believes the company carries excess inventory. She would like the inventory turnover ratio to be 8 and would use the freed up cash to reduce current liabilities. If the company follows the president's recommendation and sales remain the same, the new quick ratio would be:

Question 4 options:

	2.4
	4.0
	4.5
	1.2
	3.0