A Company Has Liquid Assets of $5 Million and Net

question 100

Multiple Choice

A company has liquid assets of $5 million and net income of $10 million.Current liabilities total $2.5 million,interest expense is $2 million,and income tax expense is $3 million.What is the quick ratio for the company?

• A)0.5
• B)7.5
• C)0.3
• D)2.0