Question
Quick ratio Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $850 $740
Quick ratio
Adieu Company reported the following current assets and current liabilities for two recent years:
| Dec. 31, 20Y4 | Dec. 31, 20Y3 | |||
| Cash | $850 | $740 | ||
| Temporary investments | 1,200 | 1,400 | ||
| Accounts receivable | 800 | 940 | ||
| Inventory | 2,100 | 2,500 | ||
| Accounts payable | 1,900 | 2,200 | ||
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
| 20Y4 | 20Y3 | |||
| Quick Ratio | fill in the blank 1 | fill in the blank 2 | ||
b. Is the quick ratio improving or declining?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
8th edition
1111534918, 978-1111534912
