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Condensed financial data are presented below for the Phoenix Corporation:
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
The correctoptionis C. 2.8to1 .Thequick ratiofor 2019 is 2.8 to 1.The quick ratio for 2019 can be calculated by dividing the total current assets, which include cash, marketable securities, accounts receivable, and inventory, bycurrent liabilities. The formula for quick ratio is:Quick Ratio = (Cash +Marketable Securities +Accounts Receivable+Inventory) / Current LiabilitiesUsing the data provided, the quick ratio for 2019 is calculated as follows:Quick Ratio = (670,000 + 267,500 + 312,500) / 252,500 = 2.8 to 1Therefore, the correct answer is 2.8 to 1.Learn more about the topic ofquick ratiohere:brainly.com/question/33206222#SPJ11...
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