Question

Tony's Deli has cash of $145, accounts receivable of $99, accounts payable of $219, and inventory of $413. What is the value of the quick ratio ?

Answer 1

the value of the quick ratio is 1.11 times

Step-by-step explanation:

The computation of the value of the quick ratio is shown below:

Quick Ratio = Total Quick Assets ÷ Total current liabilities

= [Cash + Accounts Receivables] ÷ Accounts Payable

= [$145 + $99] ÷ $219

= $244 ÷ $219

= 1.11 Times

Hence, the value of the quick ratio is 1.11 times