I'm in the middle of a q-bank quiz, but I paused it and had to cut/paste this winner. Answer A and D are the exact same. Hmm...
Ok, now I'll go solve it, but can't wait to see if the answer turns up to be A or D if I'll get it right or wrong!
UNPAUSE
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A firm�s financial statements reflect the following:
Current liabilities
$4,000,000
Cash
$400,000
Inventory
$1,200,000
Accounts receivable
$800,000
Short-term investments
$2,000,000
Long-term investments
$800,000
Accounts payable
$2,500,000
What are the firm�s current ratio, quick ratio, and cash ratio?
Current Ratio Quick Ratio Cash Ratio
A) 1.1 0.6 0.8
B) 1.1 0.8 0.6
C) 0.8 1.1 0.6
D) 1.1 0.6 0.8
Ok, now I'll go solve it, but can't wait to see if the answer turns up to be A or D if I'll get it right or wrong!
UNPAUSE
--------------------------------------------------------------------------------
A firm�s financial statements reflect the following:
Current liabilities
$4,000,000
Cash
$400,000
Inventory
$1,200,000
Accounts receivable
$800,000
Short-term investments
$2,000,000
Long-term investments
$800,000
Accounts payable
$2,500,000
What are the firm�s current ratio, quick ratio, and cash ratio?
Current Ratio Quick Ratio Cash Ratio
A) 1.1 0.6 0.8
B) 1.1 0.8 0.6
C) 0.8 1.1 0.6
D) 1.1 0.6 0.8
