The quick or acid test ratio is Cash + Marketable Securities + Accounts Receivable divided by Current Liabilities. This answer results from including Prepaid Expenses and Inventory in the numerator. The quick or acid test ratio is Cash + Marketable Securities + Accounts Receivable divided by Current Liabilities. This answer results from including Inventory in the numerator. The quick or acid test ratio is Cash + Marketable Securities + Accounts Receivable divided by Current Liabilities. This answer results from including Available-for-sale Securities in the numerator at cost instead of at fair value, and also including Prepaid Expenses and Inventory in the numerator. The quick or acid test ratio is Cash + Marketable Securities + Accounts Receivable divided by Current Liabilities. The numerator of the ratio is Cash ($10,000) + Accounts Receivable ($20,000) + Available-for-sale Securities ($12,000 at fair value), for a total of $42,000. The denominator is Accounts Payable ($15,000) + Notes payable due in 90 days ($25,000), for a total of $40,000. $42,000 ÷ $40,000 = 1.05.
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