Question: The current assets and current liabilities for Violet, Inc., and Magenta, Inc. are shown as follows at the end of a recent fiscal period: Violet,

The current assets and current liabilities for Violet, Inc., and Magenta, Inc. are shown as follows at the end of a recent fiscal period:

Violet, Inc. Magenta, Inc.
Current assets:
Cash and cash equivalents $5,576 $17,698
Short-term investments 3,601 1,526
Accounts receivable 2,439 11,290
Inventories 232 1,221
Other current assets* 1,278 5,187
Total current assets $13,126 $36,922
Current liabilities:
Accounts payable $3,848 $8,183
Accrued and other current liabilities 3,412 5,687
Total current liabilities $7,260 $13,870

*These represent prepaid expense and other nonquick current assets.

a. Determine the quick ratio for both companies. If required, round your answers to one decimal place.

Quick Ratio
Violet, Inc.:
Magenta, Inc.:

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