Solution-Determine the quick ratio for december

Determine the quick ratio for december

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Reference no: EM13529525

Urban-Wear Clothes Co. had the following current assets and liabilities for two comparative years:

	Dec. 31, 2008	Dec. 31, 2007
Current assets:
Cash	$140,000	$205,000
Accounts receivable	250,000	245,000
Inventory	300,000	180,000
Total current assets	$690,000	$630,000
Current liabilities:
Current portion of long-term debt	$ 50,000	$ 50,000
Accounts payable	200,000	190,000
Accrued expenses payable	140,000	135,000
Total current liabilities	$390,000	$375,000

a. Determine the quick ratio for December 31, 2008 and 2007.

b. Interpret the change in the quick ratio between the two balance sheet dates.

Reference no: EM13529525

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Determine the quick ratio for december

Reference no: EM13529525

Reference no: EM13529525

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