Quick ratio Gmeiner Co. had the following current assets and liabilities on December 31 of...
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Accounting
Quick ratio
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
Current Year
Previous Year
Current assets:
Cash
$927,000
$1,080,000
Accounts receivable
401,000
432,000
Inventory
954,000
756,000
Total current assets
$2,282,000
$2,268,000
Current liabilities:
Current portion of long-term debt
$208,000
$158,000
Accounts payable
249,000
216,000
Accrued and other current liabilities
373,000
346,000
Total current liabilities
$830,000
$720,000
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
Quick Ratio
Previous year:
fill in the blank 2
Current year:
fill in the blank 3
b. How did the quick ratio change between the two balance sheet dates?
Answer & Explanation
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