Question: please help me with this, im stuck. will give good high ratings. Valley Verde Ltd. reported the following current accounts at December 31, 2019 (amounts

please help me with this, im stuck. will give good high ratings.

please help me with this, im stuck. will give good high ratings.

Valley Verde Ltd. reported the following current accounts at December 31, 2019 (amounts in thousands): 0 (Click the icon to view the accounts and the completed transactions.) Compute Valley Verde's current ratio at December 31, 2019, and again at December 31, 2020. Did the current ratio improve or deteriorate during 2020? Comment on the company's current ratio. Accounts and completed transactions Calculate the current ratios for 2019 and 2020. (Round to three decimal places.) 2019 current ratio: Cash ..................... $ 1,200 2020 current ratio: Receivables .............. 5,300 Inventory ................. 1,800 Prepaid expenses ......... 900 Accounts payable 2,600 Unearned revenue 1,400 Accrued expenses payable . 1,700 During 2020, Valley Verde completes these transactions: - Used inventory of $3,500 Sold services on account, $6,500 Depreciation expense, $600 Paid for accrued expenses, $500 Collected from customers on account, $7,000 Accrued expenses, $1,100 Purchased inventory of $3,600 on account Paid on account, $5,700 Used up prepaid expenses, $300

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!