A Company Has $40,000 in Cash, $75,000 in Short- Term

question 4

Multiple Choice

A company has $40,000 in cash, $75,000 in short- term investments, $263,000 in net current receivables, and $110,000 in inventory. The total current liabilities of the firm are $305,000. The quick ratio of the company is:

• A)1.60.
• B)1.76.
• C)0.63.
• D)1.24.

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