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As of December 31, the Stanford company has the following information.
Cash $5,000
Accounts Receivable 15,000
Inventory 40,000
Prepaid Insurance 3000
Long-term Assets 100,000
Accounts Payable 15,000
Notes Payable in 5 Months 12,500
Salary Payable 25,000
Notes Payable in 5 Years 35,000
Owner's Equity 98,000
Question 1. What is the company's Quick Ratio?
Pierre Imports will be liquidated. Its current balance sheet is given below. Fixed assets are sold for $900,000 and current assets are sold for $700,000.
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