Austin Technology Co. had the following current assets and liabilities for two comparative years: Dec. 31, 2010 Dec. 31, 2009 Current assets: Cash $370,000 $ 448,000 Accounts receivable 400,000 410,000 Inventory 220,000 180,000 Total current assets $990,000 $1,038,000 Current liabilities: Current portion of long-term debt $110,000 $ 100,000 Accounts payable 220,000 200,000 Accrued and other current liabilities 370,000 360,000 Total current liabilities $700,000$660,000 a. Determine the quick ratio for December 31, 2010 and 2009. b. Interpret the change in the quick ratio between the two balance sheet dates
Austin Technology Co. had the following current assets and liabilities for two comparative years: Dec. 31, 2010 Dec. 31, 2009 Current assets: Cash $370,000 $ 448,000 Accounts receivable 400,000 410,000 Inventory 220,000 180,000 Total current assets $990,000 $1,038,000 Current liabilities: Current portion of long-term debt $110,000 $ 100,000 Accounts payable 220,000 200,000 Accrued and other current liabilities 370,000 360,000 Total current liabilities $700,000$660,000 a. Determine the quick ratio for December 31, 2010 and 2009. b. Interpret the change in the quick ratio between the two balance sheet dates
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Austin Technology Co. had the following current assets and liabilities for two comparative
years:
Dec. 31, 2010 Dec. 31, 2009
Current assets:
Cash $370,000 $ 448,000
Inventory 220,000 180,000
Total current assets $990,000 $1,038,000
Current liabilities:
Current portion of long-term debt $110,000 $ 100,000
Accounts payable 220,000 200,000
Accrued and other current liabilities 370,000 360,000
Total current liabilities $700,000$660,000
a. Determine the quick ratio for December 31, 2010 and 2009.
b. Interpret the change in the quick ratio between the two
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