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?
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?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
Related questions
Question
Practice Pack
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 | ||||
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Includes step-by-step video
Trending now
This is a popular solution!
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning