Read the information carefully and answer the questions.

Quick Ratio of the firm is:

0.77:1

The correct answer is option 3- 0.77:1.

Quick assets = Trade Receivables + Cash and Cash Equivalents
                   = 50,000 + 30,000
                   = 80,000

Current liabilities = Trade Payables + Bank overdraft
                         = 1,00,000 + 4,000
                         = 1,04,000

Quick ratio = Quick assets/Current liabilities
                 = 80,000/1,04,000
                 = 0.7692 :1 or 0.77:1