Question
Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $1,100 $1,300 Temporary investments
Adieu Company reported the following current assets and current liabilities for two recent years:
| Dec. 31, 20Y4 | Dec. 31, 20Y3 | |||
| Cash | $1,100 | $1,300 | ||
| Temporary investments | 1,100 | 1,500 | ||
| Accounts receivable | 840 | 950 | ||
| Inventory | 2,200 | 2,600 | ||
| Accounts payable | 1,900 | 2,500 | ||
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
| 20Y4 | 20Y3 | |||
| Quick Ratio | fill in the blank 1 | fill in the blank 2 | ||
b. Is the quick ratio improving or declining?
DecliningImproving
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Financial Accounting Version 3.0
Authors: Leah Kratz, Joe Ben Hoyle, C. J. Skender
3rd Edition
1453392904, 9781453392904
