Solution-Compute the quick ratio on December for each year

Compute the quick ratio on December for each year

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Reference no: EM132754098

Problem - Nabors Company reported the following current assets and current liabilities for two recent years:

	Dec. 31, 20Y8	Dec. 31, 20Y7
Cash	$ 650	$ 680
Temporary investments	1,500	1,550
Accounts receivable	700	770
Inventory	1,250	1,400
Accounts payable	2,375	2,000

Required -

1. Compute the quick ratio on December 31 for each year. Round to one decimal place.

2. Interpret the company's quick ratio. Is the quick ratio improving or declining?

Reference no: EM132754098

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Compute the quick ratio on December for each year

Reference no: EM132754098

Reference no: EM132754098

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