Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20ҮЗ Cash $850 $850 Temporary investments 1,200 1,500 Accounts receivable 830 950 Inventory 2,100 2,600 Accounts payable 1,800 2,200 a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Y4 20Υ3 Quick Ratio b. Is the quick ratio improving or declining?

Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20ҮЗ Cash $850 $850 Temporary investments 1,200 1,500 Accounts receivable 830 950 Inventory 2,100 2,600 Accounts payable 1,800 2,200 a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Y4 20Υ3 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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