Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31,...

Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $970 $1,040 Temporary investments 1,200 1,400 Accounts receivable 830 920 Inventory 2,300 2,500 Accounts payable 2,000 2,400 a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Y4 20Y3 Quick Ratio

Expert Solution

Summary of the date given in question is :

	Dec. 31, 20Y4	Dec. 31, 20Y3
Cash	970	1,040
Temporary investments	1,200	1,400
Accounts receivable	830	920
Inventory	2,300	2,500
Accounts payable	2,000	2,400

Quick ratio = quick asset/ current liabilities

Where;

Qucik asset =	Cash + tem. Investment + account receivable
current liabilities =	Account payable

Quick asset are those asset that can be liquided easily and thats the reason that Inventory is not part of it.

	Dec. 31, 20Y4	Dec. 31, 20Y3
Cash	970	1,040
Temporary investments	1,200	1,400
Accounts receivable	830	920
Qucik asset (sum of above) (a)	3,000	3,360
current liabilities (b)	2,000	2,400
Quick ratio (a/b)	1.50	1.40

ekkarill92 answered 1 year ago

Nabors Company reported the following current assets and liabilities for December 31 for two recent years:

Nabors Company reported the following current assets and liabilities for December 31 for two recent years:Dec. 31, Current YearDec. 31, Previous YearCash$1,850$2,490Temporary investments4,0305,580Accounts receivable7,5603,810Inventory3,0202,970Accounts payable8,4006,600Required:a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place.Quick RatioDecember 31, current yearDecember 31, previous yearb. Is the quick ratio improving or declining?A business issued a 45-day, 4% note for $240,000 to a creditor on account.Journalize the entries to record (a) the issuance of the...

Nabros Company reported the following current assets and liabilities for December 31 for two recent years

Nabros Company reported the following current assets and liabilities for December 31 for two recent yearsParticularsDec 31,Current year Dec 31,Previous yearCash650680Temporary Investments1,5001,550Accounts Receivable700770Inventory1,2501,400Accounts payable2,3752,000(a) Compute the quick ratio on December 31 of both year(b) Interpret the company 's Quick ratio.Is the quick ratio improving or declining

Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:

Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:Current YearPrevious YearCurrent assets:Cash$746,000$985,000Accounts receivable661,000464,000Inventory408,000391,000Total current assets$1,815,000$1,840,000Current liabilities:Current portion of long-term debt$107,000$95,000Accounts payable214,000189,000Accrued and other current liabilities349,000346,000Total current liabilities$670,000$630,000a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.Quick RatioPrevious year:Current year:b. How did the quick ratio change between the two balance sheet dates?

Quick Ratio Nabors Company reported the following current assets and liabilities for December 31 for two...

Quick Ratio Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash $550 $670 Temporary investments 1,200 1,500 Accounts receivable 1,750 1,030 Inventory 900 900 Accounts payable 2,500 2,000 Required: a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick Ratio December 31, current year December 31, previous year b. Is the quick ratio...

On December 31, Nate Inc. reported the following (in millions): Current Assets Current Liabilities Long-term Liabilities...

On December 31, Nate Inc. reported the following (in millions): Current Assets Current Liabilities Long-term Liabilities Equity $4,863 $4,544 $5,939 $1,305 What amount did the company report as total assets? Select one: a. $6,925 million b. None of the these are correct. c. $16,651 million d. $10,483 million e. $14,041 million

Exercise 193 Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2017...

Exercise 193 Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2017 Dec. 31, 2016 Current assets Cash $60,000 $30,000 Short-term investments 40,000 10,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000 Prepaid expenses 35,000 20,000 Total current assets $300,000 $245,000 Current liabilities Accounts payable $140,000 $110,000 Salaries payable 40,000 30,000 Income tax payable 20,000 15,000 Total current liabilities $200,000 $155,000 During 2017, credit sales and cost of goods sold were $750,000 and $400,000, respectively. Compute the...

Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year...

Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $30,300 $26,600 Inventory 63,500 73,800 Accounts payable 19,800 16,400 Dividends payable 25,000 27,000 Adjust net income of $124,400 for changes in operating assets and liabilities to arrive at net cash flow from operating activities

At December 31, 2016, Stacy McGill Corporation reported current assets of $370,000 and current liabilities of...

At December 31, 2016, Stacy McGill Corporation reported current assets of $370,000 and current liabilities of $200,000. The following items may have been recorded incorrectly. 1. Goods purchased costing $22,000 were shipped f.o.b. shipping point by a supplier on December 28. McGill received and recorded the invoice on December 29, 2016, but the goods were not included in McGill’s physical count of inventory because they were not received until January 4, 2017. 2. Goods purchased costing $15,000 were shipped f.o.b....

Dec. 31, Year 2 Dec. 31, Year 1 ASSETS Current assets: Cash and cash equivalents $...

Dec. 31, Year 2 Dec. 31, Year 1 ASSETS Current assets: Cash and cash equivalents $ 92,069 $ 72,634 Accounts receivables, net 55,947 75,492 Inventories 50,784 53,129 Prepaid expenses 12,112 13,057 Total current assets 210,912 214,312 Equipment 145,444 134,312 Less: Accumulated depreciation (50,515) (36,689) Total assets $305,841 $311,935 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 25,466 $ 34,879 Accrued liabilities 40,574 40,722 Total current liabilities 66,040 75,601 Long-term debt 10,422 ...

JOHNSTON ENTERPRISES BALANCE SHEET 31-Dec-17 31-Dec-16 Current Assets: &nb

JOHNSTON ENTERPRISES BALANCE SHEET 31-Dec-17 31-Dec-16 Current Assets: Cash $140,000 $120,000 Accounts Receivable 200,000 300,000 Inventory 400,000 300,000 Total Current Assets 740,000 720,000 Property, Plant, and Equipment 1,241,000 1,122,000 Less: Accumulated Depreciation -476,000 -442,000 Total Assets 1,505,000 1,400,000 Current Liabilities: Accounts Payable $201,000 $130,000 Notes Payable 40,000 60,000 Income Taxes Payable 90,000 70,000 Total...

Question