The Current Assets and Current Liabilities for Kolbie Company and Newton

question 42

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:

Lesbian Couples

Romantic partnerships between two women.

Lesbian Parents

Same-sex female couples who are raising children together, whether through biological means, adoption, or other methods.

Children

Young individuals in the early stages of life who are in the process of developing physically, mentally, emotionally, and socially.

Policies

Guidelines or principles adopted or proposed by an organization, government, or individual to direct decision making and strategies.