The Current Assets and Current Liabilities for Kolbie Company and Newton

question 26

Essay

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.

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Definitions:

Vasectomy

The cutting out of a portion of the vas deferens.

Vas Deferens

The excretory duct of the testes.

Electrocautery

A surgical technique using electrical current to burn and seal tissue, aiding in cutting, removing, or stopping bleeding.

Clamping

The act of using a device to hold or secure objects tightly together to prevent motion or separation.