alse 3 Exercises and Problems eBook Quick Ratio Gmeiner Co. had the following cu

Question

alse 3 Exercises and Problems eBook Quick Ratio Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years Calculator Print item 11-06.ALGo Current YearPrevious Year 11-10 ALGO Current assets: 11-11 ALGO X 11-13 EX 11-20 ALGO EX11-23 ALGO Cash Accounts receivable Inventory $606.000 538,000 332.000 51.476.000 $800,000 376,000 318,000 $1,494,000 Total current assets Current liabilities Current portion of long-term debt Accounts payable Accrued and other current liabilities .ssa,000 166,000 271.000 $520.000 574,000 147,000 259,000 $490,000 Total current liabilities a. Determine the quick ratio for December's, of both l years. Lf reaulred ound vour answers to one decimal place Quick Ratio Previous year: current vear b. Hon did the quidk ratio change between the twa balance shest dates 0 Type here to search

Explanation / Answer

Quick ratio= (cash+acc receivable)/current liabilites
current year=(606000+538000)/520000=2.2
Previous year=(800000+376000)/490000=2.4
It is declining

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