Signal Hill Ltd

question 96

Multiple Choice

Signal Hill Ltd.had the following accounts on their balance sheet: Cash $10,000, Accounts receivable $50,000, Inventory $45,000, Prepaid rent $2,500, Long-term receivable $12,000, Accounts payable $27,500, Interest payable $1,200, Current portion of long-term bank debt $50,000, and Long-term debt $100,000.What was their quick ratio?

• A)0.58
• B)0.76
• C)0.79
• D)2.09

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Definitions:

Cash Refunds

Payments returned to customers for various reasons, such as returns or overcharges.

Bank Deposits

Funds placed into a bank account for safekeeping, which may bear interest over time.

Slow Payments

Delays in the settlement of financial obligations, typically in the context of customers taking longer than agreed to pay their invoices.

Cash Receipts

The collection of cash during a period, including cash received from customers, interest, and other sources.