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?
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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