a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 2014 2013 Quick Ratio b. Is the quick ratio improving or declining?
a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 2014 2013 Quick Ratio b. Is the quick ratio improving or declining?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
karan
subject-Accounting
Transcribed Image Text:Quick ratio
Adieu Company reported the following current assets and current liabilities for two recent years:
Dec. 31, 20Y4 Dec. 31, 20Y3
Cash
$1,280
1,100
20Y4
Temporary investments
Accounts receivable
950
Inventory
2,700
Accounts payable
2,200
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
820
2,300
2,000
20Y3
$850
1,500
Quick Ratio
b. Is the quick ratio improving or declining?
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