The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.
*These represent prepaid expenses and other non-quick current assets.
Required:
(1) Determine the quick ratio for both companies. Round to two decimal places.
(2) Interpret the quick ratio difference between the two companies.
Definitions:
Predict Outcomes
The process of forecasting or estimating the future results or effects of actions taken in the present.
Corporate Ethics Codes
A set of principles and guidelines that a company adopts to govern its employees' behavior, supporting ethical business practices.
Ethical Responsibility
The duty to act in a morally correct manner, taking into account the impacts of one's decisions and actions on others and society.
Individual To Group
The psychological and social process where individual behavior shifts when they are part of a group, influencing and conforming to group dynamics.
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