Liquidity Ratios You Are Evaluating the Balance Sheet for Blue

question 124

Multiple Choice

Liquidity Ratios You are evaluating the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: Cash and marketable securities = $200,000, Accounts receivable = $800,000, Inventory = $1,000,000, Accrued wages and taxes = $250,000, Accounts payable = $400,000, and Notes payable = $300,000. What are Blue Jays' Current ratio, Quick ratio, and Cash ratio, respectively?

• A) 1.05263, 1.05263, 0.21053
• B) 2.10526, 1.05263, 0.21053
• C) 3.07692, 1.53846, 0.30769
• D) 3.07692, 1.05263, 0.30769

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Definitions:

Leaflike

Having the appearance or characteristics of a leaf.

Disperse

The process by which organisms or particles spread or distribute from a concentrated area to more spread-out areas.

Seeds

The reproductive unit of many plants, capable of developing into another such plant.

Fruits

The seed-bearing structures in flowering plants formed from the ovary after flowering.