Answer:
Quick assets = $131,000
Working capital = $128,000
Quick ratio = 1.7 times
Explanation:
The computations are shown below:
Quick assets = Cash + account receivable + marketable securities
= $30,000 + $65,000 + $36,000
= $131,000
Working capital = Current assets - current liabilities
where,
Current assets = Cash + account receivable + marketable securities + prepaid expenses + inventory
= $30,000 + $65,000 + $36,000 + $2,000 + $72,000
= $205,000
And, the current liabilities is
= Accounts payable + Accrued liabilities + Notes payable (short-term)
= $40,000 + $7,000 + $30,000
= $77,000
So, the working capital is
= $205,000 - $77,000
= $128,000
Now the quick ratio
= Quick assets ÷ current liabilities
= $131,000 ÷ $77,000
= 1.7 times
