Quick RatioGmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current YearPrevious YearCurrent assets: Cash$ 486,000 $ 500,000 Accounts receivable210,000 200,000 Inventory375,000 350,000 Total current assets$1,071,000 $1,050,000 Current liabilities: Current portion of long-term debt$ 145,000 $ 110,000 Accounts payable175,000 150,000 Accrued and other current liabilities260,000 240,000 Total current liabilities$ 580,000 $ 500,000 a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place. Quick RatioPrevious year:fill in the blank 1Current year:fill in the blank 2b. How did the quick ratio change between the two balance sheet dates? Which statement below describes the change between the two balance sheet dates?

Name: Quick RatioGmeiner Co. had the following current assets and liabilitie
Uploaded: 2022-11-18T00:26:54.000Z
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Description: Quick RatioGmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current YearPrevious YearCurrent assets: Cash$ 486,000 $ 500,000 Accounts receivable210,000 200,000 Inventory375,000 350,000 Total

Current assets: Current assets are all those assets that are expected to be sold or used as a result of standard business operations over the next year. Current assets include: cash, cash equivalents, accounts receivable, Inventory, marketable securities, other liquid assets.a. Quick ratio = (Total current assets-Inventory)/Total current liabilities Quick ratio (Previous year) = (1,050,000-350,000)/500,000 = 1.4 Quick ratio (Current year) = (1,071,000-375,000)/580,000 = 1.2 b. quick assets declines and current liabilities increased

Answered: Gmeiner Co. had the following current…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Quick Ratio

Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:

				Current Year	Previous Year
Current assets:
	Cash	$ 486,000		$ 500,000
	Accounts receivable	210,000		200,000
	Inventory	375,000		350,000
		Total current assets	$1,071,000		$1,050,000
Current liabilities:
	Current portion of long-term debt	$ 145,000		$ 110,000
	Accounts payable	175,000		150,000
	Accrued and other current liabilities	260,000		240,000
		Total current liabilities	$ 580,000		$ 500,000

a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.

	Quick Ratio
Previous year:	fill in the blank 1
Current year:	fill in the blank 2

b. How did the quick ratio change between the two balance sheet dates?

Which statement below describes the change between the two balance sheet dates?

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