The young company has the following assets and liabilities: assets cash $35,000 accounts receivable 15,000 inventory 30,000 equipment 50,000liabilities current portion of long-term debt 10,000 accounts payable 2,000 long-term debt 25,000determine the quick ratio (rounded to one decimal ) 13.0(b) 4.2(c) 6.7(d) 3.5

(B) 4.2 times

Explanation:

The computation of the quick ratio is shown below:

Quick ratio = Quick assets ÷ total current liabilities  

where,  

Quick assets = Cash + Accounts receivable

= $35,000 + $15,000

= $50,00 0

And, the current liabilities include current portion of long term debt and accounts payable

= $10,000 + $2,000

= $12,000

Now put these values to the above formula  

So, the value would equal to

= $50,000 ÷ $12,000  

= 4.2 times

answer; purpose nondisclosure;