Question
The Balance Sheet of Hotel Axel showsyear-end balances of certain accounts: Cash $10,000, Inventory $15,000, Prepaid Expenses $20,000, Total Current Assets of $60,000, Total Current
The Balance Sheet of Hotel Axel showsyear-end balances of certain accounts: Cash $10,000, Inventory $15,000, Prepaid Expenses $20,000, Total Current Assets of $60,000, Total Current Liabilities of $80,000.The year-end numbers for the previous year were: Cash $12,000, Inventory $14,000, Prepaid Expenses $10,000, Total Current Assets of $55,000, Total Current Liabilities of $50,000.Is Hotel Axel in a better or worse shape this year according to its Quick Ratio?
The Quick Ratio of Hotel Axel was 0.31 this year and 0.62 last year. Therefore, Hotel Axel is in worse shape this year
The Quick Ratio of Hotel Axel was 0.31 this year and 0.62 last year. Therefore, Hotel Axel was in worse shape last year
The Quick Ratio of Hotel Axel was 0.75 this year and 1.1 last year.Therefore, Hotel Axel is in worse shape this year
The Quick Ratio of Hotel Axel was 0.75 this year and 1.1 last year.Therefore, Hotel Axel was in worse shape last year
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Business Statistics A Decision Making Approach
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
9th Edition
013302184X, 978-0133021844
