Answer:
B. No.
Explanation:
The formula to compute the quick ratio is shown below:
Quick ratio = (Quick assets) ÷ (current liabilities)
where,
For 2018
Quick assets = Accounts Receivable, net + Cash and Cash Equivalents + Short minus Term Investments
= $49,000 + $70,000 + $44,000
= $163,000
And, the current liabilities = Accounts Payable + Income Taxes Payable
= $80,000 + 5,000
= $85,000
Now put these values to the above formula
So, the ratio would equal to
= $163,000 ÷ $90,000
= 1.81 times
For 2019
Quick assets = Accounts Receivable, net + Cash and Cash Equivalents + Short minus Term Investments
= $42,300 + $43,700 + $27,000
= $113,000
And, the current liabilities = Accounts Payable + Income Taxes Payable
= $76,500 + 2,000
= $78,500
Now put these values to the above formula
So, the ratio would equal to
= $113,000 ÷ $78,500
= 1.43 times
No, as it shows declining from 2018 to 2019
