Basted Company reported the following current assets and liabilities for December 31 for two recent years: a.
Question:
Basted Company reported the following current assets and liabilities for December 31 for two recent years:
a. Compute the quick ratio on December 31 of both years.
b. Interpret the company’s quick ratio. Is the quick ratio improving or declining?
Transcribed Image Text:
Dec. 31, Current Year Dec. 31, Previous Year Cash $2,070 $2,230 Temporary investments 4,780 5,030 Accounts receivable 2,160 2,420 Inventory Accounts payable 3,960 4,550 5,300 4,400
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Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
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