Question 11.8: Quick Ratio Sayer Company reported the following current ass...
Quick Ratio
Sayer Company reported the following current assets and current liabilities for the years ended December 31, 20Y9 and 20Y8:
20Y9 | 20Y8 | |
Cash | $1,250 | $1,000 |
Temporary investments | 1,925 | 1,650 |
Accounts receivable | 1,775 | 1,350 |
Inventory | 1,900 | 1,700 |
Accounts payable | 2,750 | 2,500 |
a. Compute the quick ratio for 20Y9 and 20Y8.
b. Interpret the company’s quick ratio across the two time periods.
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