excerpts from colter corporation's most recent balance sheet appear below: year 2 year 1 current assets: cash $ 98 $ 128 accounts receivable, net 116 126 inventory 194 184 prepaid expenses 48 48 total current assets 456 486 total current liabilities $ 352 $ 330 sales on account in year 2 amounted to $1,410 and the cost of goods sold was $840. the current ratio at the end of year 2 is closest to:

The Quick ratio measures how well a company can meet its short-term liabilities with its most liquid assets. It calculates the percentage of a company's current liabilities that can be covered by cash and assets that can be quickly converted to cash. In terms of the quick ratio, generally speaking, higher is better. A ratio greater than or equal to one is what you should strive for as a company. Your business has adequate liquid assets to cover its short-term commitments if the ratio is one or higher.

The quick ratio assesses a company's capacity to meet its immediate liabilities using liquid assets. A company's liquidity and financial health are stronger, and this is indicated by a greater quick ratio. A business that has a quick ratio of 1 or above has adequate liquid assets to pay down all of its liabilities.

Quick ratio = Quick assets/Current liabilities

= (94+108)/336

Quick ratio = 0.60

To learn more about Quick ratio visit:https://brainly.com/question/17193115

#SPJ4