Condensed financial data are presented below for the Phoenix Corporation:

2019 2018

Accounts receivable 267,500 $ 230,000

Inventory 312,500 257,500

Total current assets 670,000 565,000

Intangible assets 50,000 60,000

Total assets 825,000 695,000

Current liabilities 252,500 200,000

Long-term liabilities 77,500 75,000

Sales 1,640,000

Cost of goods sold 982,500

Interest expense 10,000

Income tax expense 77,500

Net income 127,500

Cash flow from operations 71,000

Cash flow from investing activities (6,000 )

Cash flow from financing activities (62,500 )

Tax rate 30 %

The quick ratio for 2019 is (rounded): (Assume that total current assets include cash, marketable securities, accounts receivable and inventory).

Multiple Choice

1.6 to 1

1.4 to 1

2.8 to 1

1.1 to 1