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

question 78

Essay

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

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Definitions:

Annual Return

The percentage change in investment value from one year to the next, including any dividends or interest, indicating the investment’s gain or loss.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Dual-Class Shares

A corporate structure with two or more classes of stock, each with differing voting rights, dividends, or other attributes.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company’s profits through dividends.