Aloha Company reported the following current assets and liabilities for December 31 for two recent years: a.
Question:
Aloha 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 $1,760 $1,680 Temporary investments Accounts receivable 2,130 2,090 1,430 1,330 Inventory 3,880 3,420 Accounts payable 2,800 3,400
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a Compute the quick ratio Quick ratio Cash investments Accounts receivable ...View the full answer
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Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
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