Kelly Co. has cash of $62,000; net Accounts Receivable of $74,000; short-term investments of $15,000 and inventory of $67,000. It also has $51,000 in current liabilities and $73,000 in long-term liabilities. What is the quick ratio for Kelly Co.?
A) 4.27
B) 1.22
C) 2.96
D) 0.84
C) 2.96
Explanation: (cash + A/R + short-term investments)/current liabilities; ex: ($62,000 + $74,000 + $15,000)/$51,000 = 2.96
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