Presented below is the trial balance of Sabina Cookies Corpo

Presented below is the trial balance of Sabina Cookies Corporation at December 31, 2014. What is quick ratio?

Quick ratio or Acid test ratio =Current assets –Stock-prepaid expenses/Current liabilities

Liquid assets =98500+76500+217500=392500

Current Liabilities=45000+227500+68000+48000+12500 =401000

Quick ratio=.9788

Quick ratio here is satisfactory to meet the very short term liabilities. A quick ratio of 1:1 is ideal.

Quick ratio above is approx 1 which is ideal ratio.