rmine (a) the current ratio and (b) the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following items are reported on a company's balance sheet:
Cash
$230,000
Marketable securities
50,000
Accounts receivable
200,000
Inventory
240,000
Accounts payable
300,000
Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place.
a. Current ratio
b. Quick ratio
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