The following items are reported on a companys balance sheet: Cash ......... $275,000 Marketable securities ... 200,000

Question:

The following items are reported on a company’s balance sheet:
Cash ......... $275,000
Marketable securities ... 200,000
Accounts receivable (net) .. 625,000
Inventory ........ 300,000
Accounts payable ...... 800,000

Determine
(a) The current ratio and
(b) The quick ratio. Round to one decimal place.