Quick ratio Gmeiner Co. had the following current assets and liabilities on December 31 of...
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Accounting
Quick ratio
Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:
| Current Year | Previous Year | ||||||
| Current assets: | |||||||
| Cash | $927,000 | $1,080,000 | |||||
| Accounts receivable | 401,000 | 432,000 | |||||
| Inventory | 954,000 | 756,000 | |||||
| Total current assets | $2,282,000 | $2,268,000 | |||||
| Current liabilities: | |||||||
| Current portion of long-term debt | $208,000 | $158,000 | |||||
| Accounts payable | 249,000 | 216,000 | |||||
| Accrued and other current liabilities | 373,000 | 346,000 | |||||
| Total current liabilities | $830,000 | $720,000 | |||||
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.
| Quick Ratio | |
| Previous year: | fill in the blank 2 |
| Current year: | fill in the blank 3 |
b. How did the quick ratio change between the two balance sheet dates?
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