Basted Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Dec. 31, Current Year Previous Year Cash $1,670 $2,350 Temporary investments 3,650 5,270 Accounts receivable 6,840 3,590 Inventory 2,740 2,660 Accounts payable 7,600 5,900 Required: a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick Ratio December 31, current year December 31, previous year b. Is the quick ratio improving or declining? Declining v

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Quick Ratio
Basted Company reported the following current assets and liabilities for December 31 for two recent years:
Dec. 31,
Dec. 31,
Current Year
Previous Year
Cash
$1,670
$2,350
Temporary investments
3,650
5,270
Accounts receivable
6,840
3,590
Inventory
2,740
2,660
Accounts payable
7,600
5,900
Required:
a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place.
Quick Ratio
December 31, current year
December 31, previous year
b. Is the quick ratlo improving or declining?
Declining v
Transcribed Image Text:Quick Ratio Basted Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Dec. 31, Current Year Previous Year Cash $1,670 $2,350 Temporary investments 3,650 5,270 Accounts receivable 6,840 3,590 Inventory 2,740 2,660 Accounts payable 7,600 5,900 Required: a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick Ratio December 31, current year December 31, previous year b. Is the quick ratlo improving or declining? Declining v
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