A Firm Has $6 Million in Cash,$1

question 6

Multiple Choice

A firm has $6 million in cash,$1.5 million in accounts receivable,and inventory of $4.2 million.The firm's accounts payable is $7.4 million and the firm has no short-term debt.What is the firm's quick ratio?

• A)0.81
• B)1.58
• C)1.01
• D)0.45
• E)0.77

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