Sparrow Group has a cash balance of $81,000; short-term investments of $23,000; net receivables of $55,000; and inventory of $480,000. Current liabilities total $190,000. What is the quick ratio? (Round your final answer to two decimal places.)
A) 3.36 to 1
B) 3.07 to 1
C) 0.84 to 1
D) 0.72 to 1
C) 0.84 to 1
Explanation: (cash + investments + receivables)/current liabilities; ex: ($81,000 + $23,000 + $55,000) / $190,000 = 0.84
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