Adieu Company reported the following current assets and current liabilities for two recent years:   Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $830   $630   Temporary investments 1,200   1,500   Accounts receivable 820   950   Inventory 2,300   2,600   Accounts payable 1,900   2,200   a. Compute the quick ratio on December 31 for each year. Round to one decimal place.   20Y4 20Y3 Quick Ratio         b. Is the quick ratio improving or declining?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
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Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Adieu Company reported the following current assets and current liabilities for two recent years:

  Dec. 31, 20Y4 Dec. 31, 20Y3
Cash $830   $630  
Temporary investments 1,200   1,500  
Accounts receivable 820   950  
Inventory 2,300   2,600  
Accounts payable 1,900   2,200  

a. Compute the quick ratio on December 31 for each year. Round to one decimal place.

  20Y4 20Y3
Quick Ratio        

b. Is the quick ratio improving or declining?

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