Austin Technology Co. had the following current assets and liabilities for two comparative years: (a) Determine the
Question:
Austin Technology Co. had the following current assets and liabilities for two comparative years:
(a) Determine the quick ratio for December 31, 2010 and 2009.(b) Interpret the change in the quick ratio between the two balance sheetdates.
Transcribed Image Text:
Dec. 31, 2009 Dec. 31, 2010 Current assets: $ 448,000 410,000 180,000 Cash $370,000 400,000 220,000 Accounts receivable Inventory Total current assets $990,000 $1,038,000 Dec. 31, 2010 Dec. 31, 2009 Current liabilities: $ 100,000 200,000 360,000 $ 660,000 Current portion of long-term debt Accounts payable $110,000 220,000 370,000 Accrued and other current liabilities Total current liabilities $700,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (21 reviews)
a b There was a decrease in current assets and an increase in ...View the full answer
Answered By
Usman Nasir
I did Master of Commerce in year 2009 and completed ACCA (Association of Chartered Certified Accountants) in year 2013. I have 10 years of practical experience inclusive of teaching and industry. Currently i am working in a multinational company as finance manager and serving as part time teacher in a university. I have been doing tutoring via many sites. I am very strong at solving numerical / theoretical scenario-based questions.
4.60+
16+ Reviews
28+ Question Solved
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Accounting questions
-
CCB Co. had the following current assets and liabilities for two comparative years: a. Determine the quick ratio for December 31, 2012 and 2011. b. Interpret the change in the quick ratio between the...
-
Antigonish Technology Co. had the following current assets and liabilities for two comparative years: a. Determine the quick ratio for December 31, 2015 and 2014. b. Interpret the change in the quick...
-
Gmeiner Co. had the following current assets and liabilities for two comparative years: a. Determine the quick ratio for December 31, 2014 and 2013. b. Interpret the change in the quick ratio between...
-
Using monthly data for Meta since its IPO date of 31/12/2019, estimate equity beta for Meta. Compare your estimate of Metas equity beta with Facebooks beta provided by Yahoo Finance and comment on...
-
A psychologist noted that people have more difficulty sleeping in a bright room than in a dark room. She measured whether the intensity of the light could predict the time it took a sample of four...
-
ASAP Delivery is a small company that transports business packages between San Francisco and Los Angeles. It operates a fleet of small vans that moves packages to and from a central depot within each...
-
A used conveyor dealer presents an investment package that requires you to pay $\$ 189.99$ a month with $\$ 1,499.00$ down and a nominal annual interest rate of $17 \%$. What is the actual cost of...
-
Consistent Company has been paying regular quarterly dividends of $1.50 and wants to pay the same amount in the third quarter of 2011. Given the following information, (1) What is the total amount...
-
A firm's total annual dividend payout is $250 million. Its stock price is $45 per share and it has 12,00,000 shares outstanding. The firm earned $400 million in Net Income. What is the dividend...
-
Kathleen Kajioka loves her job so much that she does not want to retire, even though she is 65 years of age. Her husband says that she can work another three years; after that he wants to play golf...
-
Several months ago, Welker Chemical Company experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $410,000. The...
-
The current assets and current liabilities for Apple Computer, Inc., and Dell Inc. are shown as follows at the end of a recent fiscal period: (a) Determine the quick ratio for both companies.(b)...
-
The student in Problem 5-28 really wants this particular car. She decides to try and negotiate a different interest rate. What is the highest interest rate that she can accept, given a 60-month term...
-
Is the currently available workforce really not sufficiently trained to participate in knowledge-intensive jobs? Why or why not?
-
Based on what is in the chapter, should the ACA federal health care legislation remain in its current form, or should we rescind the requirement that employers and/or employees have to pay a fine if...
-
Do you feel that its OK to tell little white lies on rsums and applications? Why or why not?
-
If you were in charge, would you put an EAP into place at your company? How about an EWP? Why or why not?
-
Are companies overtesting applicants by using the processes that were discussed? Explain your answer.
-
Bonifay and Fordham bought a box of .32 caliber bullets from a Walmart store in Florida. Four hours later, the two men robbed an auto-parts store and killed Coker with those same bullets. When they...
-
I frequently use NY Times and CNN and am aware of Fox News but I never use it. I visit these sites, NY Times and CNN, a few times a week whenever I have to research something or see something on...
-
Find the rest energy in joules and MeV of a proton, given its mass is 1.67 x 10 -27 kg.
-
What is a Summary of Significant Accounting Policies?
-
What types of contractual obligations must be disclosed in great detail in the notes to the balance sheet? Why do you think these detailed provisions should be disclosed?
-
What types of contractual obligations must be disclosed in great detail in the notes to the balance sheet? Why do you think these detailed provisions should be disclosed?
-
York's outstanding stock consists of 90,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 270,000 shares of common stock with a $1 par value. During its first four years...
-
Prepare the adjusting journal entries that were recorded on December 31, 2024. The general ledger of the Karlin Company, a consulting company, at January 1, 2024, contained the following account...
-
Let V (f:fe C'(-1, 1]); f(1) = f(-1)} with inner product (1.9)-, 20f (t)g(t)dt and T()=2f+5f. Compute 7*(5+ 10t).
Study smarter with the SolutionInn App