Quick Ratio Smith and Sons, Inc Income Statement (in millions 2016 2015 Net sales 10.1509650 Cost of goods sold 15.500 15.2003 Gross profit 650 1150 Selling and administrative expenses 12.3001 2700) income from c ons 189 1790 test expense (300) 250) income before income taxes 1.550 1.500 Income tax expense (42011400) Net income 1.130 1.100 Smith and Sons, Inc. Balance Sheet (in millions) 2016 2015 Assets Current assets Cash and cash equivalents 300 500 Accounts receivable 900 900 Inventory 600 750 Other current assets 400 250 Total current assets 2.200 2300 Property, plant & equipment, net 2.500 2.400 Other assets Total Assets 10.400 10600 Labilities and Stockholders' Equity Current liabilities 3.100 3000 Long-term liabilities 5.000 5400 Total abities 8.100 8.400 Stockholders'uty.com 2.300 2.200 Total Liabilities and Stockholders' Equity 10.400 10.600 Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016, Round answers to two decimal places 2015 0.52 x 2015 0.52 x Did the company's ability to pay its current liabilities improve over the two years? The decrease in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets improved. The increase in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets declined. The decrease in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets declined. The increase in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets improved Mark 0.00 out of 1.00 Quick Ratio Smith and Sons, Inc Income Statement (in millions 2016 2015 Net sales 10.1509650 Cost of goods sold 15.500 15.2003 Gross profit 650 1150 Selling and administrative expenses 12.3001 2700) income from c ons 189 1790 test expense (300) 250) income before income taxes 1.550 1.500 Income tax expense (42011400) Net income 1.130 1.100 Smith and Sons, Inc. Balance Sheet (in millions) 2016 2015 Assets Current assets Cash and cash equivalents 300 500 Accounts receivable 900 900 Inventory 600 750 Other current assets 400 250 Total current assets 2.200 2300 Property, plant & equipment, net 2.500 2.400 Other assets Total Assets 10.400 10600 Labilities and Stockholders' Equity Current liabilities 3.100 3000 Long-term liabilities 5.000 5400 Total abities 8.100 8.400 Stockholders'uty.com 2.300 2.200 Total Liabilities and Stockholders' Equity 10.400 10.600 Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016, Round answers to two decimal places 2015 0.52 x 2015 0.52 x Did the company's ability to pay its current liabilities improve over the two years? The decrease in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets improved. The increase in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets declined. The decrease in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets declined. The increase in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets improved Mark 0.00 out of 1.00
