Use the following selected financial data of Happy Valley Corporation to answer questions the next 7 questions. Net sales is $800,000; Cost of goods sold is 600,000; Operating expenses is 100,000; Net income is 70,000; Current assets is 150,000; Current liabilities is 100,000; Accounts receivable is 80,000; Inventories is 50,000; Accounts payable is 20,000; Shareholders' Equity is 350,000. Happy Valley's quick ratio is:

1 times

Explanation:

The computation of the quick ratio is shown below:

Quick ratio = Quick assets ÷ total current liabilities  

where,  

Quick assets = Current assets - inventories  

= $150,000 - $50,000

= $100,000

And, the current liabilities is $100,000

Now put these values to the above formula  

So, the ratio is

= $100,000 ÷ $100,000

= 1 times

i tried to get the answer but i could not find it

answer; dividing net income by 1- t ;