Calculate the quick ratio for Los Altos, Inc., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company's ability to pay its current liabilities improve over the two years? Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $13,000 $12,350 Cost of goods sold 6.600 6.240 Gross profit 6.400 6.110 Selling and administrative expenses 3.360 3,240 Income from operations 3,040 2,870 Interest expense 360 300 Income before income taxes 2,680 2,570 Income tax expense 504 480 Net income $2,176 $2.090 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $240 $480 Accounts receivable 1,080 960 Inventory 600 780 Other current assets 480 300 Total current assets 2,400 2,520 Property, plant, & equipment (net) 3,120 3,000 Other assets 6.840 7,080 Total assets $12,360 $12.600 Liabilities and Stockholders' Equity Current liabilities $4,200 $4,06o Long-term liabilities 7,000 7,560 Total liabilities 11,200 11,620 Stockholders' equity - common 1,160 980 Total Liabilities and Stockholders' Equity $12,360 $12,.600

Calculate the quick ratio for Los Altos, Inc., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 2019 Quick Ratio Did the company's ability to pay its current liabilities improve over the two years? Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) 2020 2019 Net sales $13,000 $12,350 Cost of goods sold 6.600 6.240 Gross profit 6.400 6.110 Selling and administrative expenses 3.360 3,240 Income from operations 3,040 2,870 Interest expense 360 300 Income before income taxes 2,680 2,570 Income tax expense 504 480 Net income $2,176 $2.090 Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) 2020 2019 Assets Current assets Cash and cash equivalents $240 $480 Accounts receivable 1,080 960 Inventory 600 780 Other current assets 480 300 Total current assets 2,400 2,520 Property, plant, & equipment (net) 3,120 3,000 Other assets 6.840 7,080 Total assets $12,360 $12.600 Liabilities and Stockholders' Equity Current liabilities $4,200 $4,06o Long-term liabilities 7,000 7,560 Total liabilities 11,200 11,620 Stockholders' equity - common 1,160 980 Total Liabilities and Stockholders' Equity $12,360 $12,.600

Name: Quick RatioCalculate the quick ratio for Los Altos, Ic., for both yea
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Description: Quick RatioCalculate the quick ratio for Los Altos, Ic., for both years, using the financial statements displayed below. Round to nearest hundredth.20202019Quick RatioDid the company's ability to pay its current liabilities improve over the two year

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 76E: Ratio Analysis The following information was taken from Nash Inc.s trial balances as of December 31,...

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