Adieu Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash $1,000 $1,140 1,400 Temporary investments 1,200 Accounts receivable 800 910 Inventory Accounts payable 2,200 2,300 1,875 2,300 a. Compute the quick ratio on December 31 of both years. b. Interpret the company's quick ratio. Is the quick ratio improving or declining?
Adieu Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash $1,000 $1,140 1,400 Temporary investments 1,200 Accounts receivable 800 910 Inventory Accounts payable 2,200 2,300 1,875 2,300 a. Compute the quick ratio on December 31 of both years. b. Interpret the company's quick ratio. Is the quick ratio improving or declining?
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter11: Current Liabilities And Payroll
Section: Chapter Questions
Problem 23E: Quick ratio Gmeiner Co. had the following current assets and liabilities on December 31 of two...
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