The following balance sheet information is provided for Greene Company for 2014:
What is the company’s quick (acid-test) ratio?
| Assets | |
|---|---|
| Cash | 5400 |
| Accounts receivable | 15500 |
| Inventory | 18,000 |
| Prepaid expenses | 1,600 |
| Plant and equipment, net of depreciation | 20.200 |
| Land | 19,950 |
| Total assets | 80.650 |
| Liabilities and Stockholders’ Equity | |
|---|---|
| Accounts payable | 4,500 |
| Salaries payable | 11,500 |
| Bonds payable Due n 2020 | 19.000 |
| Common stock, no par | 30,000 |
| Retained earnings | 15,650 |
| Total liabilities and stockholder equity | 80.650 |
