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A company has total current assets of \$250,000, inventory of \$60,000, and prepaid expenses of \$15,000. Its current liabilities are \$150,000. What is the quick ratio?
A company has current assets of \$300,000, including \$100,000 in inventory and \$20,000 in prepaid expenses. Current liabilities are \$150,000. What is the quick ratio?
A company has total current assets of \$200,000, inventory of \$50,000, and prepaid expenses of \$10,000. Its current liabilities are \$120,000. What is the quick ratio?
What does a quick ratio below 1 indicate about a company's financial health?
A company has current assets of \$400,000, including \$150,000 in inventory and \$30,000 in prepaid expenses. Current liabilities are \$200,000. What is the quick ratio?
A company has \$60,000 in cash, \$25,000 in short-term investments, and \$35,000 in net accounts receivable. Its current liabilities are \$100,000. What is the quick ratio?
A company has \$50,000 in cash, \$20,000 in short-term investments, and \$30,000 in net accounts receivable. Its current liabilities are \$80,000. What is the quick ratio?
What is the primary purpose of the quick (acid test) ratio in financial analysis?
How does the quick ratio provide a more accurate assessment of liquidity compared to the current ratio?
What is the main difference between the quick ratio and the current ratio?