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:

Collective Distribution

The sharing or spreading of resources or benefits among members of a group.

GLOBE Model

A theory in organizational behavior that describes, understands, and predicts the impact of cultural variables on leadership and organizational processes.

Active Management

A strategy in business and investments where decisions are made with the intention to outperform certain benchmarks or targets.

Transactional Leadership

A management style focused on supervision, organization, and performance; leadership is based on a system of rewards and punishments.