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Vilka [71]
3 years ago
11

Quick Ratio EVANS and Sons, Inc. Income Statement (in millions)

Business
1 answer:
Arlecino [84]3 years ago
4 0

Answer:

0.3793; 0.3333

Explanation:

Quick ratio for 2018 :

= (Cash + Account receivable) ÷ Current liabilities

= ($300 + $800) ÷ $2,900

= $1,100  ÷ $2,900

= 0.3793

Quick ratio for 2019 :

= (Cash + Account receivable) ÷ Current liabilities

= ($100 + $900) ÷ $3,000

= $1,000  ÷ $3,000

= 0.3333

Therefore, the quick ratio for Evans & Sons, Inc., for 2018 and 2019 are 0.3793 and 0.3333, respectively.

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