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Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Current assets: Cash $483,000 $771,000
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
Current Year | Previous Year | ||||||
Current assets: | |||||||
Cash | $483,000 | $771,000 | |||||
Accounts receivable | 429,000 | 363,000 | |||||
Inventory | 264,000 | 306,000 | |||||
Total current assets | $1,176,000 | $1,440,000 | |||||
Current liabilities: | |||||||
Current portion of long-term debt | $91,000 | $81,000 | |||||
Accounts payable | 182,000 | 162,000 | |||||
Accrued and other current liabilities | 297,000 | 297,000 | |||||
Total current liabilities | $570,000 | $540,000 |
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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