Quick RatioNabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current YearDec. 31, Previous YearCash$750 $910 Temporary investments1,630 2,030 Accounts receivable2,040 1,380 Inventory1,220 1,220 Accounts payable3,400 2,700 Required:a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick RatioDecember 31, current year December 31, previous year b. Is the quick ratio improving or declining?

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Answered: Quick Ratio Nabors Company reported the…

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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Quick Ratio

Nabors Company reported the following current assets and liabilities for December 31 for two recent years:

	Dec. 31, Current Year	Dec. 31, Previous Year
Cash	$750		$910
Temporary investments	1,630		2,030
Accounts receivable	2,040		1,380
Inventory	1,220		1,220
Accounts payable	3,400		2,700

Required:

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

	Quick Ratio
December 31, current year
December 31, previous year

b. Is the quick ratio improving or declining?

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