Problem:
You are evaulting the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: Cash and marketable securities =$200,000, Accounts receivable =$800,000, Inventory = $1,000,000. Accured wages ad taxes = $250,000, Accounts payable =$400,000 , and Notes Payable $300,000.
Required:
Question: What are Blue Jays Current ratio, Quick ratio, and Cash ratio respectively?
Note: Please show how you came up with the solution.