Question
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Current assets: Cash $806,000 $765,000
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
| Current Year | Previous Year | |||||
| Current assets: | ||||||
| Cash | $806,000 | $765,000 | ||||
| Accounts receivable | 714,000 | 360,000 | ||||
| Inventory | 441,000 | 304,000 | ||||
| Total current assets | $1,961,000 | $1,429,000 | ||||
| Current liabilities: | ||||||
| Current portion of long-term debt | $128,000 | $113,000 | ||||
| Accounts payable | 256,000 | 225,000 | ||||
| Accrued and other current liabilities | 416,000 | 412,000 | ||||
| Total current liabilities | $800,000 | $750,000 |
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
| Quick Ratio | |
| Previous year: | _____ |
| Current year: | _____ |
b. How did the quick ratio change between the two balance sheet dates?
Decreased or Increased?
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Quality Management System A Planning And Auditing Guide
Authors: Walter Willborn
1st Edition
083113013X, 978-0831130138
