Quick Ratio Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:         Current Year Previous Year Current assets:           Cash $487,000   $763,000     Accounts receivable 431,000   359,000     Inventory 266,000   303,000       Total current assets $1,184,000   $1,425,000   Current liabilities:           Current portion of long-term debt $86,000   $77,000     Accounts payable 173,000   153,000     Accrued and other current liabilities 281,000   280,000       Total current liabilities $540,000   $510,000   a.  Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.   Quick Ratio Previous year:   Current year:   b.  How did the quick ratio change between the two balance sheet dates?

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Quick Ratio

Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:

        Current Year Previous Year
Current assets:        
  Cash $487,000   $763,000  
  Accounts receivable 431,000   359,000  
  Inventory 266,000   303,000  
    Total current assets $1,184,000   $1,425,000  
Current liabilities:        
  Current portion of long-term debt $86,000   $77,000  
  Accounts payable 173,000   153,000  
  Accrued and other current liabilities 281,000   280,000  
    Total current liabilities $540,000   $510,000  

a.  Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.

  Quick Ratio
Previous year:  
Current year:  

b.  How did the quick ratio change between the two balance sheet dates?
 

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