Question
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Current assets: Cash $1,005,000 $739,000
-
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
Current Year Previous Year Current assets: Cash $1,005,000 $739,000 Accounts receivable 435,000 296,000 Inventory 1,034,000 518,000 Total current assets $2,474,000 $1,553,000 Current liabilities: Current portion of long-term debt $200,000 $152,000 Accounts payable 240,000 207,000 Accrued and other current liabilities 360,000 331,000 Total current liabilities $800,000 $690,000
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
Quick Ratio Previous year: fill in the blank 2 Current year: fill in the blank 3
b. How did the quick ratio change between the two balance sheet dates?
DecreasedIncreased
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
| Current Year | Previous Year | ||||||
| Current assets: | |||||||
| Cash | $1,005,000 | $739,000 | |||||
| Accounts receivable | 435,000 | 296,000 | |||||
| Inventory | 1,034,000 | 518,000 | |||||
| Total current assets | $2,474,000 | $1,553,000 | |||||
| Current liabilities: | |||||||
| Current portion of long-term debt | $200,000 | $152,000 | |||||
| Accounts payable | 240,000 | 207,000 | |||||
| Accrued and other current liabilities | 360,000 | 331,000 | |||||
| Total current liabilities | $800,000 | $690,000 | |||||
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
| Quick Ratio | |
| Previous year: | fill in the blank 2 |
| Current year: | fill in the blank 3 |
b. How did the quick ratio change between the two balance sheet dates?
DecreasedIncreased
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
