The balance sheet of Karim Imports lists the following account balances: cash $6,450; supplies $1,200; accounts receivable $15,360;office equipment $8,500; merchandise inventory $28,775; current assets $65,800; accounts payable $12,650; mortgage payable $45,380; currentl liabilities $32,240. What is Karim Imports quick ratio? (round answer to the nearest tenth).

To calculate the quick ratio, we need to determine the quick assets and the current liabilities.

Quick assets are typically defined as assets that can be easily converted into cash or used up within a short period. In this case, quick assets consist of cash, accounts receivable, and supplies.

Quick assets = Cash + Accounts receivable + Supplies
= $6,450 + $15,360 + $1,200
= $23,010

Current liabilities, on the other hand, include accounts payable and current liabilities.

Current liabilities = Accounts payable + Current liabilities
= $12,650 + $32,240
= $44,890

Now, we can calculate the quick ratio by dividing quick assets by current liabilities.

Quick ratio = Quick assets / Current liabilities
= $23,010 / $44,890
≈ 0.512 (to the nearest tenth)

Therefore, Karim Imports's quick ratio is approximately 0.5.