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HELP! Did the company's ability to pay its current liabilities improve over the two years Calculate the quick ratio for Los Altos, Inc., for both
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Did the company's ability to pay its current liabilities improve over the two yearsCalculate the quick ratio for Los Altos, Inc., for both years, using the financial statements displayed below. Round to nearest hundredth. 2020 Quick Ratio 2019 Did the company's ability to pay its current liabilities improve over the two years? Los Altos, Inc. Income Statement For Years Ended December 31, 2020 and 2019 (in millions) Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income Los Altos, Inc. Balance Sheet December 31, 2020 and 2019 (in millions) Assets Current assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Property, plant, & equipment (net) Other assets Total assets Liabilities and Stockholders' Equity 2020 $27,500 14,300 13,200 7,280 5,920 780 5,140 1 ,092 $4,048 2019 $1,040 2,080 1 ,690 650 5,460 6,500 15,340 $27,300 $7,395 13,770 21,165 6,135 $27,300 2019 $26,125 13,520 12,605 7,020 5,585 650 4, 935 1 ,040 $3,895 Current liabilities Long-term liabilities Total liabilities Stockholders' equity - common Total Liabilities and Stockholders ' Equity 2020 $520 2,340 1 ,300 1 ,040 5,200 6,760 14,820 $26,780 $7,650 12,750 20,400 6,380 $26,780
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