Chap 11Quick Ratio

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 $534,000 $704,000 Accounts receivable 474,000 331,000 Inventory 292,000 279,000 Total current assets $1,300,000 $1,314,000 Current liabilities: Current portion of long-term debt $77,000 $68,000 Accounts payable 154,000 135,000 Accrued and other current liabilities 249,000 247,000 Total current liabilities $480,000 $450,000 a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place. Quick Ratio Previous year: X Current year: b. How did the quick ratio change between the two balance sheet dates? Decreased v