Question: The current assets and current liabilities for Violet, Inc., and Magenta, Inc. are shown as follows at the end of a recent fiscal period: Violet,
The current assets and current liabilities for Violet, Inc., and Magenta, Inc. are shown as follows at the end of a recent fiscal period:
| Violet, Inc. | Magenta, Inc. | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $5,576 | $17,698 | |||||
| Short-term investments | 3,601 | 1,526 | |||||
| Accounts receivable | 2,439 | 11,290 | |||||
| Inventories | 232 | 1,221 | |||||
| Other current assets* | 1,278 | 5,187 | |||||
| Total current assets | $13,126 | $36,922 | |||||
| Current liabilities: | |||||||
| Accounts payable | $3,848 | $8,183 | |||||
| Accrued and other current liabilities | 3,412 | 5,687 | |||||
| Total current liabilities | $7,260 | $13,870 | |||||
*These represent prepaid expense and other nonquick current assets.
a. Determine the quick ratio for both companies. If required, round your answers to one decimal place.
| Quick Ratio | |
| Violet, Inc.: | |
| Magenta, Inc.: |
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