The Following Balance Sheet Information Is Provided for Greene Company

The following balance sheet information is provided for Greene Company for Year 2: $\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 6,600 \\\text { Accounts receivable } & 12,750 \\\text { Inventory } & 15,300 \\\text { Prepaid expenses } & 2,100 \\\text { Plant and equipment, net of depreciation } & 20,000 \\\text { Land } & \underline{ 13,900 }\\\text { Total assets } &\underline{ \$ 70,650}\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$ 3,090 \\\text { Salaries payable } & 7,730 \\\text { Bonds payable (Due in ten years) } & 14,500 \\\text { Common stock, no par } & 14,000 \\\text { Retained earnings } &\underline{ 31,330} \\\text { Total liabilities and stockholders' equity }& \$ 70,650\end{array}$ What is the company's quick (acid-test) ratio? (Round your answer to 2 decimal places.)

A) 3.40
B) 1.37
C) 0.76
D) 1.79

Correct Answer:

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