Question
Quick ratio Adieu Company reported the following current assets and current liabilities for two recent years: Line Item Description Dec. 31, 20Y4 Dec. 31, 20Y3
Quick ratio
Adieu Company reported the following current assets and current liabilities for two recent years:
| Line Item Description | Dec. 31, 20Y4 | Dec. 31, 20Y3 |
|---|---|---|
| Cash | $900 | $900 |
| Temporary investments | 1,100 | 1,400 |
| Accounts receivable | 850 | 920 |
| Inventory | 2,100 | 2,600 |
| Accounts payable | 1,900 | 2,300 |
a. Compute the quick ratio on December 31 for each year. Round your answers to one decimal place.
| Line Item Description | 20Y4 | 20Y3 |
|---|---|---|
| Quick Ratio |
b. Is the quick ratio improving or declining?
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
