The Following Items Are Reported on a Company's Balance Sheet

question 164

Essay

The following items are reported on a company's balance sheet:
$\begin{array}{lr}\text { Cash } & \$ 230,000 \\\text { Marketable securities } & 50,000 \\\text { Accounts receivable } & 200,000 \\\text { Inventory } & 240,000 \\\text { Accounts payable } & 300,000\end{array}$
Determine the a current ratio,and b quick ratio.Round your answer to one decimal place.

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Definitions:

Diagram

A simplified drawing showing the appearance, structure, or workings of something, often used in education and technical fields.

Efficiency Loss

A reduction in economic efficiency due to disparities between marginal social benefits and marginal social costs, often caused by market failures or policy interventions.

Underproduction

The condition of producing less than the optimal or expected amount of goods and services, leading to inefficient utilization of resources.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unattainable.