Answered

Val's Video Store has current cash in the amount of $3,325, accounts receivable of $9,250, and current liabilities of $6,532. Find the quick ratio.1.51.71.92.2None of these choices are correct.

Answer :

[tex]\text{Quick ratio (Q.R)=}\frac{(cash+account\text{ receivable)}}{current\text{ liabilities}}[/tex]

Given that,

Cash=$3,325

Account receivable=$9,250

Current liabilities=$6,532

Therefore we will have that

[tex]\begin{gathered} \text{Quick ratio=}\frac{(3,325+9,250)}{6,532} \\ \text{Quick ratio (Q.R)=}\frac{12,575}{6,532} \\ \text{Quick ratio(Q.R)=1.9}25\text{ }\approx1.9 \\ \end{gathered}[/tex]

Therefore,

The quick ratio =1.9

The correct option will be OPTION C

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