The following items are reported on a companys balance sheet: Cash .........$200,000 Temporary investments ..100,000 Accounts receivable

Question:

The following items are reported on a company’s balance sheet:
Cash .........$200,000
Temporary investments ..100,000
Accounts receivable (net) ....60,000
Inventory .........100,000
Accounts payable .....200,000
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.