a company has $23,000 in cash and cash equivalents, $81,000 in short-term investments, $120,000 in net current receivables, $55,000 in inventory, $10,000 of prepaid insurance and $5,000 of supplies. the total current liabilities of the firm are $298,000. the quick ratio of the company is:

The quick ratio gauges a company's short-term liquidity position and quantifies its liabilities to pay short-term obligations with its most liquid assets.
It is also known as the acid test ratio because it shows whether a company has the ability to immediately pay off current liabilities with its near-cash assets (assets that can be quickly converted to cash).
A quick test intended to yield immediate results is known by the slang term "acid test."
The quick ratio is viewed as a more restrained metric than the current ratio, which counts all current assets as coverage for current liabilities.
By dividing a company's most liquid assets, such as cash, cash equivalents, marketable securities, and accounts receivable, by its total current liabilities, one can determine the quick ratio.
Excluded from this list are certain current assets like prepaids and inventory because they might not be as easily convertible to cash or might need significant discounts to be liquidated.
A company's liquidity and financial health are better indicated by a higher ratio result; conversely, a lower ratio indicates a greater likelihood that the company will have difficulty making debt payments.

cash & cash equivalents 24000

short term investments 83000

net current receivables 123000

total current assets 230000

Quick ratio = 230,000/302000

Quick ratio = 0.761589

Hence, the quick ratio is 0.76.

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