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Quick Ratio The current assets and current liabilities for Violet Inc. and Magenta, Inc., are as follows at the end of a recent fiscal period: Current assets: Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets* Total current assets Current liabilities: Accounts payable Accrued and other current liabilities Violet Inc. (in millions) $8,882 5,736 3,886 370 2,035 $20,909 Violet Inc.: Magenta, Inc.: $5,448 4,832 $10,280 Magenta, Inc. (in millions) $14,801 0 10,718 1,021 4,338 $30,878 Total current liabilities *These represent prepaid expense and other nonquick current assets. $11,582 8,048 $19,630 a. Determine the quick ratio for both companies. If required, round your answers to one decimal place. Quick Ratio

Quick Ratio The current assets and current liabilities for Violet Inc. and Magenta, Inc., are as follows at the end of a recent fiscal period: Current assets: Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets* Total current assets Current liabilities: Accounts payable Accrued and other current liabilities Violet Inc. (in millions) $8,882 5,736 3,886 370 2,035 $20,909 Violet Inc.: Magenta, Inc.: $5,448 4,832 $10,280 Magenta, Inc. (in millions) $14,801 0 10,718 1,021 4,338 $30,878 Total current liabilities *These represent prepaid expense and other nonquick current assets. $11,582 8,048 $19,630 a. Determine the quick ratio for both companies. If required, round your answers to one decimal place. Quick Ratio

FINANCIAL ACCOUNTING
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 The current assets and current liabilities for Violet Inc. and Magenta, Inc., are as follows at the end of a recent fiscal period: Current assets: Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets* Total current assets Current liabilities: Accounts payable Accrued and other current liabilities Violet Inc. (in millions) Violet Inc.: Magenta, Inc.: $8,882 5,736 3,886 370 2,035 $20,909 $5,448 4,832 $10,280 Magenta, Inc. (in millions) $14,801 0 10,718 1,021 4,338 $30,878 $11,582 8,048 $19,630 Total current liabilities *These represent prepaid expense and other nonquick current assets. a. Determine the quick ratio for both companies. If required, round your answers to one decimal place. Quick Ratio b. Which company has a stronger relative cash and short-term investment position?
Transcribed Image Text:Quick Ratio The current assets and current liabilities for Violet Inc. and Magenta, Inc., are as follows at the end of a recent fiscal period: Current assets: Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets* Total current assets Current liabilities: Accounts payable Accrued and other current liabilities Violet Inc. (in millions) Violet Inc.: Magenta, Inc.: $8,882 5,736 3,886 370 2,035 $20,909 $5,448 4,832 $10,280 Magenta, Inc. (in millions) $14,801 0 10,718 1,021 4,338 $30,878 $11,582 8,048 $19,630 Total current liabilities *These represent prepaid expense and other nonquick current assets. a. Determine the quick ratio for both companies. If required, round your answers to one decimal place. Quick Ratio b. Which company has a stronger relative cash and short-term investment position?
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