Quick ratio calculation for bank overdraft Steps:

• Quick assets = trade receivables = $18,000 (excludes inventory as per acid-test definition).
• Current liabilities = trade payables + bank overdraft = $8,000 + X.
• Given quick ratio of 1.2 (interpreting 1:2.1 as 1.2:1 standard notation).
• Solve 18,000 / (8,000 + X) = 1.2 → 8,000 + X = 18,000 / 1.2 = 15,000 → X = 7,000.

Why A is correct:

• $7,000 yields quick ratio of exactly 18,000 / 15,000 = 1.2, matching the acid-test formula (quick assets / current liabilities).

Why the others are wrong:

• B: $15,000 yields ratio of 18,000 / 23,000 ≈ 0.78, not 1.2.
• C: $17,000 yields ratio of 18,000 / 25,000 = 0.72, not 1.2.
• D: $29,000 yields ratio of 18,000 / 37,000 ≈ 0.49, not 1.2.

Final answer: A