Refer to the balance sheet above. Luther's quick ratio for 2006 is closest to ________
Luther Corporation
Consolidated Balance Sheet
December 31, 2006 and 2005 (in $ millions)
Assets 2006 2005 Liabilities and Stockholders' Equity 2006 2005
Current Assets Current Liabilities
Cash 65.7 58.5 Accounts payable 87.7 73.5
Accounts receivable 54.4 39.6 Notes payable / short-term debt 9.6 9.6
Inventories 46.1 42.9 Current maturities of long-term debt 39.9 36.9
Other current assets 5.1 3.0 Other current liabilities 6.0 12.0
Total current assets 171.3 144.0 Total current liabilities 143.2 132.0
Long-Term Assets Long-Term Liabilities
Land 66.6 62.1 Long-term debt 237.7 168.9
Buildings 106.2 91.5 Capital lease obligations
Equipment 119.3 99.6
Less accumulated
depreciation (56.6) (52.5) Deferred taxes 22.8 22.2
Net property, plant, and equipment 235.5 200.7 Other long-term liabilities --- ---
Goodwill 60.0 -- Total long-term liabilities 260.5 191.1
Other long-term assets 63.0 42.0 Total liabilities 403.7 323.1
Total long-term assets 358.5 242.7 Stockholders' Equity 126.1 63.6
Total Assets 529.8 386.7 Total liabilities and Stockholders' Equity 529.8 386.7
A) 0.87
B) 1.75
C) 0.88
D) 1.31
Answer: A
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