Use the Following Information for Questions Melrose Enterprise's Credit Terms Are Net 30 Days

Multiple Choice

Use the following information for questions: $\begin{array}{l}\begin{array}{lrr}&2011&2010\\\text { Current Assets }\\\text { Cash } & \$ 25,000 & \$ 26,250 \\\text { Accounts Receivable } & 247,500 & 299,000 \\\text { Inventory } & 1,950,000 & 1,725,000 \\\text { Prepaid expenses } & 4,000 & 4,000\\\text { Total Current Assets } & \$ 2,226,500&\$ 2,054,250\\\\\text { Current Liabilities } & \$ 1,400,000 & \$ 1,225,000 \\\text { Net Credit Sales } & \$ 2,400,000 & \$ 2,255,000\end{array}\end{array}$ Melrose Enterprise's credit terms are net 30 days.
-Melrose Enterprise's quick ratio for 2011 is:

A) 1.59:1
B) 1.39:1
C) 0.88:1
D) 0.19:1