Given the following information, what is the firm's quick ratio? BALANCE SHEET INFORMATION Cash $730,000 Accounts...

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Given the following information, what is the firm's quick ratio? BALANCE SHEET INFORMATION Cash $730,000 Accounts receivable = (not given) Inventory = $1,170,000 Fixed Assets = $4,380,000 Total assets = $7,300,000 Accounts payable = (not given) Long-term debt = $3,700,000 Common stock = $800,000 Retained earnings = $2,410,000 Total liabilities and equity = $7,300,000 INCOME STATEMENT INFORMATION Sales = $14,600,000 = Operating expense = $12,410,000 EBIT = $2,190,000 Interest expense = $481,000 EBT = $1,709,000 Taxes $684,000 Net Income = $1,025,000 = Given the following information, what is the firm's quick ratio? BALANCE SHEET INFORMATION Cash $730,000 Accounts receivable = (not given) Inventory = $1,170,000 Fixed Assets = $4,380,000 Total assets = $7,300,000 Accounts payable = (not given) Long-term debt = $3,700,000 Common stock = $800,000 Retained earnings = $2,410,000 Total liabilities and equity = $7,300,000 INCOME STATEMENT INFORMATION Sales = $14,600,000 = Operating expense = $12,410,000 EBIT = $2,190,000 Interest expense = $481,000 EBT = $1,709,000 Taxes $684,000 Net Income = $1,025,000 =

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ANSWER To calculate the quick ratio we need to know the current ratio and the inventory turnover The current ratio is calculated by dividing the curre... View the full answer