Reference no: EM131089310
Earth’s Best Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of $15,000, and the following balance sheet:
Cash $ 10,000 Accounts payable $ 30,000
Receivables 50,000 Other current liabilities 20,000
Inventories 150,000 Long-term debt 50,000
Net fixed assets 90,000 Common equity 200,000
Total assets $300,000 Total liabilities and equity $300,000
Calculate the firm’s Quick Ratio?
A. 1.67
B. 0.33
C. 1.2
D. 0.83
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