Luther Corporation Consolidated Balance Sheet 30 June 2017 and 2018 (in $ millions)

-Refer to the balance sheet above. The change in Luther's quick ratio from 2017 to 2018 is closest to:
A)an increase of 0.10
B)an increase of 0.15
C)a decrease of 0.15
D)a decrease of 0.10

Question

Luther Corporation Consolidated Balance Sheet 30 June 2017 and 2018 (in $ millions)
 
-Refer to the balance sheet above. The change in Luther's quick ratio from 2017 to 2018 is closest to:
A)an increase of 0.10 
B)an increase of 0.15 
C)a decrease of 0.15 
D)a decrease of 0.10

Quizplus · Accepted Answer

The quick ratio is calculated as (Current Assets - Inventory) / Current Liabilities. By comparing the quick ratios for 2017 and 2018 using the given balance sheet data, the change is closest to an increase of 0.10.