Use the following table: Case X Case Y Case Z Cash $ 940 $ 1,470 $ 1,940 Short-term investments 0 0 780 Receivables 0 1,690 1,360 Inventory 3,400 1,560 6,520 Prepaid expenses 2,600 1,020 1,460 Total current assets $ 6,940 $ 5,740 $ 12,060 Current liabilities $ 3,600 $ 1,800 $ 5,750 Required: Calculate the quick ratio in each of the above cases and select the case which is in the best position to meet short-term obligations most easily. (Round your answers to 2 decimal places.)
Use the following table: Case X Case Y Case Z Cash $ 940 $ 1,470 $ 1,940 Short-term investments 0 0 780 Receivables 0 1,690 1,360 Inventory 3,400 1,560 6,520 Prepaid expenses 2,600 1,020 1,460 Total current assets $ 6,940 $ 5,740 $ 12,060 Current liabilities $ 3,600 $ 1,800 $ 5,750 Required: Calculate the quick ratio in each of the above cases and select the case which is in the best position to meet short-term obligations most easily. (Round your answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Use the following table:
| Case X | Case Y | Case Z | |||||||
| Cash | $ | 940 | $ | 1,470 | $ | 1,940 | |||
| Short-term investments | 0 | 0 | 780 | ||||||
| Receivables | 0 | 1,690 | 1,360 | ||||||
| Inventory | 3,400 | 1,560 | 6,520 | ||||||
| Prepaid expenses | 2,600 | 1,020 | 1,460 | ||||||
| Total current assets | $ | 6,940 | $ | 5,740 | $ | 12,060 | |||
| Current liabilities | $ | 3,600 | $ | 1,800 | $ | 5,750 | |||
Required:
Calculate the quick ratio in each of the above cases and select the case which is in the best position to meet short-term obligations most easily. (Round your answers to 2 decimal places.)
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