Adieu Company reported the following current assets and current liabilities for two recent years: Cash Dec. 31, 20Y4 Dec. 31, 20Y3 $870 1,200 810 2,200 Temporary investments Accounts receivable Inventory 2,600 Accounts payable 1,800 2,500 a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Y4 Quick Ratio fill in the blank 1 b. Is the quick ratio improving or declining? 20Y3 $1,310 fill in the blank 2 1,500 940
Adieu Company reported the following current assets and current liabilities for two recent years: Cash Dec. 31, 20Y4 Dec. 31, 20Y3 $870 1,200 810 2,200 Temporary investments Accounts receivable Inventory 2,600 Accounts payable 1,800 2,500 a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Y4 Quick Ratio fill in the blank 1 b. Is the quick ratio improving or declining? 20Y3 $1,310 fill in the blank 2 1,500 940
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Quick ratio
Adieu Company reported the following current assets and current liabilities for
two recent years:
Cash
Temporary investments
Accounts receivable
Dec. 31, 20Y4 Dec. 31, 20Y3
$870
1,200
810
2,200
Inventory
Accounts payable
1,800
2,500
a. Compute the quick ratio on December 31 for each year. Round to one decimal
place.
20Y4
Quick Ratio fill in the blank 1
b. Is the quick ratio improving or declining?
20Y3
$1,310
1,500
940
fill in the blank 2
2,600
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