Refer to the Zumba Corporation data above. Compute the current ratio: Then compute the quick ratio .51
1.20
1.98
.98
The balance sheet at December 31, 20X1 for Zumba Corporation (in thousands of dollars) follows:
Current Assets:
Cash and Cash Equivalents$ 2
Accounts Receivable, net 4,800
Inventories 2,200
Prepaid Rent 898
Total Current Assets 7,900
Land, Buildings and Equipment, net 7,400
Investments 500
Total Assets $15,800
Current Liabilities:
Accounts Payable $ 500
Current Portion Long-Term Debt 2,500
Accrued Salaries Payable 1,000
Total Current Liabilities 4,000
Long-Term Debt 8,000
Total Liabilities 12,000
Stockholders' Equity:
Common Stock 2,800
Retained Earnings 1,000
Total Stockholders' Equity 3,800
Total Liabilities and Stockholders' Equity $15,800
Additional information follows:
* Net income for the year ended December 31, 20X1 is $2,020.
* Cost of goods sold for the year ended December 31, 20X1 is $4,400.
* Accounts Receivable, net on January 1, 20X1 are $4,400.
* Total assets on January 1, 2X17 are $20,000.
* Net credit sales for the year ended December 31, 20X1 are $14,600.