PIZZA Parlor Co had the following available information: Accounts receivable P200,000 Accounts payable P80,000 Bonds payable, due in 10 years P300,000 Cash P100,000 Interest payable, due in 3 months P10,000 Inventory P400,000 Land P250,000 Notes payable, due in 6 months P50,000 Prepaid expenses P40,000 Operating cycle 5 months The current ratio of PIZZA Parlor Co is a. 1.68 b. 2.14 c. 5.0 d. 5.29   What is the company’s quick ratio? a. 0.68 b. 1.68 c. 2.14 d.2.31

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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PIZZA Parlor Co had the following available information: Accounts receivable P200,000 Accounts payable P80,000 Bonds payable, due in 10 years P300,000 Cash P100,000 Interest payable, due in 3 months P10,000 Inventory P400,000 Land P250,000 Notes payable, due in 6 months P50,000 Prepaid expenses P40,000 Operating cycle 5 months

The current ratio of PIZZA Parlor Co is

a. 1.68

b. 2.14

c. 5.0

d. 5.29

 

What is the company’s quick ratio?

a. 0.68

b. 1.68

c. 2.14

d.2.31

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