SolidCo’s balance sheet for the most recent year end is below. Current Assets Cash: 3,000 Marketable securities: 600 Accounts receivable: 6,000 Less allowance for bad debt: –300 Inventory: 1,200 Total Current Assets: 10,500 Current Liabilities Accounts payable: 4,000 Current portion of notes payable: 1,300 Other current accrued expenses: 2,000 Total Current Liabilities: 7,300 The quick ratio for this company is closest to:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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SolidCo’s balance sheet for the most recent year end is below.

Current Assets

Cash: 3,000
Marketable securities: 600
Accounts receivable: 6,000
Less allowance for bad debt: –300
Inventory: 1,200
Total Current Assets: 10,500

Current Liabilities

Accounts payable: 4,000
Current portion of notes payable: 1,300
Other current accrued expenses: 2,000
Total Current Liabilities: 7,300

The quick ratio for this company is closest to:

Expert Solution
Working:

Quick assets = Total Current Assets - Inventory

= 10,500 - 1,200

= 9300

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