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In the ADU conversion file, cash is $34,000, receivables are $41,000, inventory is $20,000, and current liabilities are $60,000. What is the quick ratio?

Correct Answer

C) 1.25.

Quick assets are cash plus receivables: $34,000 + $41,000 = $75,000. $75,000 / $60,000 = 1.25.

Answer Options
A
0.90.
B
1.58.
C
1.25.
D
1.00.

Why This Is the Correct Answer

Quick assets are cash plus receivables: $34,000 + $41,000 = $75,000. $75,000 / $60,000 = 1.25.

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