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Determine the quick ratio for the construction company

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Determine the quick ratio for the construction company in Figures 6-1 and 6-2. What insight does this give you into the company's financial operations?

Figures 6-1 WEST MOUNTAIN CONSTRUCTION

BALANCE SHEET

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Figures 6-2 WEST MOUNTAIN CONSTRUCTION

INCOME STATEMENT

REVENUES ................ 789,839

CONSTRUCTION COSTS

Materials ................. 92,214

Labor ................... 199,690

Subcontract ................ 401,948

Equipment ................. 20,833

Other ................... 1,352

Total Construction Costs .......... 716,037

EQUIPMENT COSTS

Rent and Lease Payments .......... 3,773

Depreciation ................ 6,673

Repairs and Maintenance ........... 2,734

Fuel and Lubrication ............ 7,289

Taxes, Licenses, and Insurance ....... 364

Equipment Costs Charged to Jobs ...... 20,833

Total Equipment Costs ........... 0

GROSS PROFIT .............. 73,802

OVERHEAD .............. 53,827

NET PROFIT FROM OPERATIONS .... 19,975

OTHER INCOME AND EXPENSE ...... 1,162

PROFIT BEFORE TAXES ......... 21,137

INCOME TAX .............. 3,921

PROFIT AFTER TAXES .......... 17,216

Reference no: EM131136035

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