The Crafter Company Has the Following Assets and Liabilities Determine the Quick Ratio Rounded to One Decimal Point

question 145

Multiple Choice

The Crafter Company has the following assets and liabilities:
$\begin{array}{|l|r|}\hline \text { ASSETS }\\\hline \text { Cash } & \$ 28,000 \\\hline \text { Accounts receivable } & 15,000 \\\hline \text { Inventory } & 20,000 \\\hline \text { Equipment } & 50,000\\\hline \\\hline \text { LIABILITIES }\\\hline \text { Current portion of long-term debt } & 10,000 \\\hline \text { Accounts payable } & 2,000 \\\hline \text { Long-term debt } & 25,000\\\hline \end{array}$
Determine the quick ratio rounded to one decimal point.

• A)5.3
• B)3.6
• C)3.3
• D)2.3

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Definitions:

Sole Proprietorship

An organizational model in which a sole proprietor is in charge of the entire business, including its assets and debts.

Shares

Units of ownership interest in a corporation or financial asset that provide a proportionate claim on the company's earnings and assets.

Corporation

A legal entity that is separate from its owners, providing them with limited liability, and able to own assets, borrow money, and be sued.

Professional Corporation

A business structure that allows licensed professionals to offer their services while enjoying certain legal and tax advantages.