Calculate the quick ratio from the following information of a manufacturing firm: Cash in hand = $200,000
Cash at bank = $100,000
Inventories = $100,000.
Current Liabilities = $100,000.

A) 2:1
B) 1:2
C) 3:1
D) 4:1
E) 2:2

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Cash in Hand

The amount of cash a company or individual possesses that is readily available for use.

Inventories

The complete list of items such as products, goods in production, or materials that a company holds, intended for sale or use in the production process.