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Calculate quick ratio

Assume the following information was derived from the fund financial statements prepared by the city of Tallahassee, Florida for the fiscal year ended September 30, 2019:

City of Tallahassee
General Fund
Balance Sheet
(in thousands)
Assets:
Cash and cash equivalents	$4,340
Due from other governments	0
All other assets	12,269
Total assets	$16,609
Liabilities:
Total current liabilities	$11,287
Fund balance:
Nonspendable	2,625
Committed	0
Assigned	0
Unassigned	2,697
Total fund balance	5,322
Total liabilities and fund balance	$16,609

City of Tallahassee
General Fund
Statement of Revenues, Expenditures,
and Changes in Fund Balance
(in thousands)
Total revenues	$192,327
Total expenditures	287,828
Excess of revenues over (under) expenditures	-95,501
Other financing sources (uses):
Transfers in	86,795
Transfers out	-37,664
Proceeds from sale of capital assets	753
Total other financing sources (uses)	49,884
Net change in fund balance	-45,617
Fund balance, October 1, 2019	50,939
Fund balance, September 30, 2019	$5,322

a) Calculate the city of Tallahassees quick ratio. Round to one decimal Answer

b) Using the rule of thumb suggested in the text, would the level of the quick ratio be considered reasonable, too high, or too low?

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