Question
Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $830 $630 Temporary investments
Adieu Company reported the following current assets and current liabilities for two recent years:
| Dec. 31, 20Y4 | Dec. 31, 20Y3 | |||
| Cash | $830 | $630 | ||
| Temporary investments | 1,200 | 1,500 | ||
| Accounts receivable | 820 | 950 | ||
| Inventory | 2,300 | 2,600 | ||
| Accounts payable | 1,900 | 2,200 | ||
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
| 20Y4 | 20Y3 | |||
| Quick Ratio | ||||
b. Is the quick ratio improving or declining?
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Principles Of Auditing: An International Perspective
Authors: Rick Stephan Hayes, Philip Wallage, Arnold Schilder, Roger Dassen
1st Edition
0077095324, 978-0077095321
