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Chrome- CengageNOWv2| Online teaching and learning resource from Cengage Learning Secure https:// v2 cengagenow com n/takeAssignment takeAss?gnmentMain.do?!nvoker-assignments&takeAssignmentSessionLocator-assignment; take&Inprogress-false; CH 11 HW Calculator Print Item Quick Ratio Gmeiner Co, had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Current assets: $739,000 655,000 404,000 $1,798,000 $995,000 468,000 395,000 $1,858,000 Cash Accounts recelvable Total current assets Current liabilities Current portion of long-term debt Accounts payable Accrued and other current llabilities $131,000 262,000 427,000 $820,000 $116,000 231,000 423,000 $770,000 Total current liabilities a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place. Quick Ratio 1.7 | X 1.9 X Previous year: Current year: Check My Work 5 more Check My Work uses 5 more Check My Work uses remaining Previou Next 4:59 ) ?-Explanation / Answer
Quick ratio = {Cash + Accounts Receivable} / Current Liabilities
Current Year
Previous Year
Cash
739000
995000
Accounts Receivable
655000
468000
Total Liquid Assets
1394000
1463000
Total Current Liabilities
820000
770000
Quick ratio
1.7 times
= 1394000/820000
1.9 times
=1463000/770000
Quick ratio:
Current Year = 1.7 times
Previous Year = 1.9 times
Current Year
Previous Year
Cash
739000
995000
Accounts Receivable
655000
468000
Total Liquid Assets
1394000
1463000
Total Current Liabilities
820000
770000
Quick ratio
1.7 times
= 1394000/820000
1.9 times
=1463000/770000
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