Cash +Marketable Securities Quick Ratio = +Accounts Receivable -------------------------- Current Liabilities
Example: The quick ratio for F.E.D. Foods Company for 1993 is:
$3,000 + $8,000 + $42,000 = 0.45 ---------------------------- $118,000(from balance sheet, page 11, line 1 + line 2 + line 3/line 15)