karansubject-Accounting Quick ratioAdieu Company reported the following current assets and current liabilities for two recent years:Dec. 31, 20Y4 Dec. 31, 20Y3Cash$1,2801,10020Y4Temporary investmentsAccounts receivable950Inventory2,700Accounts payable2,200a. Compute the quick ratio on December 31 for each year. Round to one decimal place.8202,3002,00020Y3$8501,500Quick Ratiob. Is the quick ratio improving or declining?

Ratio analysis used identify the business performance of the company.It is used to measure financial…

Answered: a. Compute the quick ratio on December…

a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 2014 2013 Quick Ratio b. Is the quick ratio improving or declining?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

karan

subject-Accounting

Quick ratio
Adieu Company reported the following current assets and current liabilities for two recent years:
Dec. 31, 20Y4 Dec. 31, 20Y3
Cash
$1,280
1,100
20Y4
Temporary investments
Accounts receivable
950
Inventory
2,700
Accounts payable
2,200
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
820
2,300
2,000
20Y3
$850
1,500
Quick Ratio
b. Is the quick ratio improving or declining?

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