Use the Gagnon, Inc., balance sheet data on the following page. Company Acid-Test Ratio Horner, Inc. (Utility)..............................................

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Use the Gagnon, Inc., balance sheet data on the following page.

Use the Gagnon, Inc., balance sheet data on the following

Company Acid-Test Ratio
Horner, Inc. (Utility).............................................. 0.73
Isaacson Company (Department store)................... 0.68
Jona Companies Limited (Grocery store)............... 0.72

Requirements
1. Compute Gagnon, Inc.€™s acid-test ratio at December 31, 2010 and 2009.
2. Use the comparative information from the table on the bottom of page 811 for Horner, Inc., Isaacson Company, and Jona Companies Limited. Is Gagnon, Inc.€™s acid-test ratio for 2010 and 2009 strong, average, or weak incomparison?

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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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