Question
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Current assets: Cash $774,000 $1,173,000
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
| Current Year | Previous Year | ||||||
| Current assets: | |||||||
| Cash | $774,000 | $1,173,000 | |||||
| Accounts receivable | 686,000 | 552,000 | |||||
| Inventory | 423,000 | 466,000 | |||||
| Total current assets | $1,883,000 | $2,191,000 | |||||
| Current liabilities: | |||||||
| Current portion of long-term debt | $117,000 | $104,000 | |||||
| Accounts payable | 234,000 | 207,000 | |||||
| Accrued and other current liabilities | 379,000 | 379,000 | |||||
| Total current liabilities | $730,000 | $690,000 | |||||
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?
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Audit Customer Satisfaction Marketing Added Value
Authors: Cindy E. Cosmas
1st Edition
089413373X, 978-0894133732
