Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Current assets: Cash $695,000 $874,000 Accounts receivable 301,000 350,000 Inventory 715,000 612,000 Total current assets $1,711,000 $1,836,000 Current liabilities: Current portion of long-term debt $208,000 $158,000 Accounts payable 249,000 216,000 Accrued and other current liabilities 373,000 346,000 Total current liabilities $830,000 $720,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place. Quick Ratio Previous year: Current year: b. How did the quick ratio change between the two balance sheet dates?
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Current assets: Cash $695,000 $874,000 Accounts receivable 301,000 350,000 Inventory 715,000 612,000 Total current assets $1,711,000 $1,836,000 Current liabilities: Current portion of long-term debt $208,000 $158,000 Accounts payable 249,000 216,000 Accrued and other current liabilities 373,000 346,000 Total current liabilities $830,000 $720,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place. Quick Ratio Previous year: Current year: b. How did the quick ratio change between the two balance sheet dates?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
Current Year
Previous Year
Current assets:
Cash
$695,000
$874,000
Accounts receivable
301,000
350,000
Inventory
715,000
612,000
Total current assets
$1,711,000
$1,836,000
Current liabilities:
Current portion of long-term debt
$208,000
$158,000
Accounts payable
249,000
216,000
Accrued and other current liabilities
373,000
346,000
Total current liabilities
$830,000
$720,000
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
Quick Ratio
Previous year:
Current year:
b. How did the quick ratio change between the two balance sheet dates?
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