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The Crafter Company Has the Following Assets and Liabilities Determine the Quick Ratio Rounded to One Decimal Point)

question 163

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The Crafter Company has the following assets and liabilities:  ASSETS  Cash $28,000 Accounts receivable 15,000 Inventory 20,000 Equipment 50,000 LIABILITIES  Current portion of long-term debt 10,000 Accounts payable 2,000 Long-term debt 25,000\begin{array} { | l | c | } \hline \text { ASSETS } & \\\hline \text { Cash } & \$ 28,000 \\\hline \text { Accounts receivable } & 15,000 \\\hline \text { Inventory } & 20,000 \\\hline \text { Equipment } & 50,000 \\\hline & \\\hline \text { LIABILITIES } & \\\hline \text { Current portion of long-term debt } & 10,000 \\\hline \text { Accounts payable } & 2,000 \\\hline \text { Long-term debt } & 25,000 \\\hline\end{array} Determine the quick ratio rounded to one decimal point) .


Definitions:

ADR

Alternative Dispute Resolution, a range of processes that help parties resolve disputes without traditional litigation.

Litigation

The process of taking legal action in court to resolve a dispute.

Adversarial

Describes a legal system or process where two opposing parties present their arguments to an impartial judge or jury.

Settlement Agreement

A legal agreement that resolves a dispute between two parties without the need for a trial.

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