Question
In: Accounting
A company has a quick ratio of 1.9 before paying off a large current liability with...
A company has a quick ratio of 1.9 before paying off a large
current liability with cash. As a result, what happens to the quick
ratio?
A. It is greater than 1.9.
B. It is less than 1.9.
C. It remains equal to 1.9.
D. It is either greater than 1.9 or less than 1.9 depending
upon the dollar amount involved.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Ratio 2017 2016 Industry Average Current Ratio 1.8 1.9 2.2 Quick Ratio 0.5 0.4 0.3 Inventory...
Ratio
2017
2016
Industry Average
Current Ratio
1.8
1.9
2.2
Quick Ratio
0.5
0.4
0.3
Inventory Turnover
4.9
4.8
4.3 times
Days Sales Outstanding
7.4
6.3
5.1 days
Fixed Asset Turnover
83.4
86.5
51.6
Total Asset Turnover
1.4
1.4
3.8
Debt Ratio (Debt/Assets)
83.77%
79.59%
29.45%
Times Interest Earned
2.8
3.2
15
Net Profit Margin
2.98%
3.50%
1.52%
Return on Assets
4.10%
4.95%
4.00%
Equity Multiplier
2.6
2.5
0.9
DuPont Equation (ROE)
139
168.25
5.20%
Complete both a trend and...
Current Ratio and Quick (Acid-Test) Ratio Upton Company has current assets equal to $2,885,000. Of these,...
Current Ratio and Quick (Acid-Test) Ratio Upton Company has
current assets equal to $2,885,000. Of these, $1,100,000 is cash,
$1,105,000 is accounts receivable, and the remainder is
inventories. Current liabilities total $2,850,000. Required: Note:
Round answers to two decimal places.
1. Compute the current ratio.
2. Compute the quick (acid-test) ratio.
Feedback 1. Current Ratio = Current Assets/Current Liabilities
2. Quick Ratio = (Cash + Marketable Securities + Accounts
Receivable)/Current Liabilities
A firm has a current ratio of 1.8 and a quick ratio of 0.6. This indicates that:
1. A firm has a current ratio of 1.8 and a quick ratio of 0.6. This
indicates that:A. the firm has more current liabilities than it does current
assets.B. the firm buys inventory on credit.C. cash is the largest component of current assets.D. inventory represents more than 50 percent of the firm's
current assets.2. Which one of the following will increase the net working capital
of a firm?A. paying a supplier for a recent purchaseB.obtaining a 3-year loan to buy...
The Kretovich Company had a quick ratio of 0.8, a current ratio of 4.0, a days'...
The Kretovich Company had a quick ratio of 0.8, a current ratio
of 4.0, a days' sales outstanding of 36.5 days (based on a 365-day
year), total current assets of $920,000, and cash and marketable
securities of $95,000. What were Kretovich's annual sales? Do not
round intermediate calculations. Round your answer to the nearest
dollar.
Both the current ratio and quick ratio are used to measure the liquidity of company. Explain...
Both the current ratio and quick ratio are used to measure the
liquidity of company. Explain how the quick ratio overcomes the
limitation of the current ratio. As a part of your answer discuss
how the composition of current assets/liabilities impacts a firm’s
liquidity position. (word limit 150)
The Kretovich Company had a quick ratio of 1.5, a current ratio of 4.0, a days'...
The Kretovich Company had a quick ratio of 1.5, a current ratio
of 4.0, a days' sales outstanding of 36.5 days (based on a 365-day
year), total current assets of $820,000, and cash and marketable
securities of $90,000. What were Kretovich's annual sales? Do not
round intermediate calculations. Round your answer to the nearest
dollar.
The Kretovich Company had a quick ratio of 0.8, a current ratio of 4.0, a days'...
The Kretovich Company had a quick ratio of 0.8, a current ratio
of 4.0, a days' sales outstanding of 36.0 days (based on a 365-day
year), total current assets of $870,000, and cash and marketable
securities of $95,000.
What were Kretovich's annual sales? Do not round intermediate
calculations. Round your answer to the nearest cent.
The Kretovich Company had a quick ratio of 1.1, a current ratio of 3.5, a days'...
The Kretovich Company had a quick ratio of 1.1, a current ratio
of 3.5, a days' sales outstanding of 32.0 days (based on a 365-day
year), total current assets of $630,000, and cash and marketable
securities of $115,000. What were Kretovich's annual sales? Do not
round intermediate calculations. Round your answer to the nearest
cent.
The Kretovich Company had a quick ratio of 1.2, a current ratio of 3.0, a days...
The Kretovich Company had a quick ratio of 1.2, a current ratio
of 3.0, a days sales outstanding of 36.5 days (based on a 365-day
year), total current assets of $795,000, and cash and marketable
securities of $130,000. What were Kretovich's annual sales? Do not
round intermediate calculations. Round your answer to the nearest
dollar.
Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2....
Oliver Incorporated has a current ratio equal to 1.6 and a quick
ratio equal to 1.2. The company has a cost of goods sold of
$850,000 and its current liabilities are $1.2 million. Compute the
inventory turnover ratio. Select one: a. 0.90 b. 5.0 c. 1.77 d.
$400,000 e. 1.66
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