Quick Ratio Nabors Company reported the following current assets and liabilities for December 31 for two recent years:   Dec. 31, Current Year Dec. 31, Previous Year Cash $750   $910   Temporary investments 1,630   2,030   Accounts receivable 2,040   1,380   Inventory 1,220   1,220   Accounts payable 3,400   2,700   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?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Quick Ratio

Nabors Company reported the following current assets and liabilities for December 31 for two recent years:

  Dec. 31, Current Year Dec. 31, Previous Year
Cash $750   $910  
Temporary investments 1,630   2,030  
Accounts receivable 2,040   1,380  
Inventory 1,220   1,220  
Accounts payable 3,400   2,700  

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?
 

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