Quick Ratio = (Current Assets - Inventory) divided by Current Liabilities
Quick Ratio = $(23,595 - 12,480) / $(17,160 -5,460)
Quick Ratio = 11,115 / 11,700 = 0.95
The quick ratio is a financial metric that shows the short-term liquidity position of a company. It measures the company's ability to settle its short-term obligations using its most liquid current assets. The most liquid assets are cash and near cash current assets.
Inventory is always removed in calculating the most liquid current assets. Inventory will take some time before it can be converted to cash or near cash, given the cash conversion cycle.
The quick ratio is also called the acid-test ratio. It is also considered as more conservative than the current ratio which measures the coverage of current liabilities by all current assets, including inventory.
In our workings, we eliminated inventory from current assets. We also eliminated notes payable which would be rolled over the next year.
<span>In a business setting, a proposal is a plan for a project which is submitted to a higher management for approval. The status "submitted proposal” refers to when the planner has already submitted his or her plan and is just waiting for the approval of the higher management.</span>
The answer is: ask a home inspector to check the house
The inspector's main job is to check various places on the house to determine whether there is a possible hazard or unseen damage within the house. The information that you get from the inspectors could help you determine a fair pricing for the house and help you decide whether the house is suitable for your standard or not.