On December 31, Smokey, Inc. had $25,000 in cash, $35,000 in marketable securities, $10,000 in prepaid expenses, $60,000 in inventory, and $35,000 in accounts receivable. For liabilities, they had $45,000 in accounts payable, $25,000 in accrued liabilities, $30,000 in unearned revenue, and $350,000 in long-term debt ($50,000 due in the upcoming year). Based on the information provided, calculate the quick ratio.

Answer rating: 100% (QA)

To calculate the quick ratio also known as the acidtest ratio we need to determine the companys q... View the full answer