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Use the following table: Case X Case Y Case Z Cash $ 870 $ 1,190 $ 1,520 Current investments 0 0 640 Receivables 0 1,340
Use the following table:
Case X | Case Y | Case Z | |||||||
Cash | $ | 870 | $ | 1,190 | $ | 1,520 | |||
Current investments | 0 | 0 | 640 | ||||||
Receivables | 0 | 1,340 | 1,080 | ||||||
Inventory | 2,700 | 1,280 | 5,260 | ||||||
Prepaid expenses | 1,900 | 810 | 1,180 | ||||||
Total current assets | $ | 5,470 | $ | 4,620 | $ | 9,680 | |||
Current liabilities | $ | 2,900 | $ | 1,450 | $ | 4,700 | |||
Required: Calculate the quick ratio in each of the above cases and select the case which is in the best position to meet short-term obligations most easily. (Round your answers to 2 decimal places.) You have to show all steps to achieve the full mark.
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