A Company Has $56,000 in Cash; $12,000 in Accounts Receivable;

question 86

Short Answer

A company has $56,000 in cash; $12,000 in accounts receivable; $25,000 in short-term investments; and $100,000 in merchandise inventory. The company also has $60,000 in current liabilities. The company's quick ratio is __________.

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Definitions:

Return On Total Assets

A financial ratio that measures a company's efficiency in using its assets to generate profit, calculated by dividing net income by total assets.