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?
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?
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...
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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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