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 $487,000 $763,000 Accounts receivable 431,000 359,000 Inventory 266,000 303,000 Total current assets $1,184,000 $1,425,000 Current liabilities: Current portion of long-term debt $86,000 $77,000 Accounts payable 173,000 153,000 Accrued and other current liabilities 281,000 280,000 Total current liabilities $540,000 $510,000 a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place. Quick Ratio Previous year: Current year: b. How did the quick ratio change between the two balance sheet dates?
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 $487,000 $763,000 Accounts receivable 431,000 359,000 Inventory 266,000 303,000 Total current assets $1,184,000 $1,425,000 Current liabilities: Current portion of long-term debt $86,000 $77,000 Accounts payable 173,000 153,000 Accrued and other current liabilities 281,000 280,000 Total current liabilities $540,000 $510,000 a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place. Quick Ratio Previous year: Current year: b. How did the quick ratio change between the two balance sheet dates?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $487,000 | $763,000 | ||||
| 431,000 | 359,000 | |||||
| Inventory | 266,000 | 303,000 | ||||
| Total current assets | $1,184,000 | $1,425,000 | ||||
| Current liabilities: | ||||||
| Current portion of long-term debt | $86,000 | $77,000 | ||||
| Accounts payable | 173,000 | 153,000 | ||||
| Accrued and other current liabilities | 281,000 | 280,000 | ||||
| Total current liabilities | $540,000 | $510,000 |
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
| Quick Ratio | |
| Previous year: | |
| Current year: |
b. How did the quick ratio change between the two balance sheet dates?
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