Mayfield Corporation has provided the following financial data: The company's acid-test (quick) ratio is closest to:

A) 1.73
B) 1.68
C) 2.28
D) 1.61

Question

Mayfield Corporation has provided the following financial data:   The company's acid-test (quick)  ratio is closest to:A)  1.73B)  1.68C)  2.28D)  1.61

Sandrine Turenne · Accepted Answer

Final Answer : D, Explanation :  To calculate the acid-test ratio, we need to subtract inventory from current assets and then divide the result by current liabilities.Acid-test (quick) ratio = (Current Assets - Inventory) / Current LiabilitiesUsing the financial data provided, we can calculate the acid-test ratio as follows:Acid-test ratio = (54,000 - 17,000) / 30,000Acid-test ratio = 37,000 / 30,000Acid-test ratio = 1.23Therefore, the closest answer is D, 1.61.

Mayfield Corporation has provided the following financial data: The company's acid-test (quick) ratio is closest to:

A) 1.73
B) 1.68
C) 2.28
D) 1.61

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