The following information pertains to Z-Mart,its competition,and the industry standards. The industry standard for the current ratio is 1.8 to 1,and for the acid-test ratio,1 to 1.Instructions:
(1)Calculate the current ratio and quick ratio for each firm.
(2)Rank the firms in decreasing order of liquidity.
(3)Comment on Z-Mart's relative position.

Question

The following information pertains to Z-Mart,its competition,and the industry standards.  The industry standard for the current ratio is 1.8 to 1,and for the acid-test ratio,1 to 1.Instructions:
(1)Calculate the current ratio and quick ratio for each firm.
(2)Rank the firms in decreasing order of liquidity.
(3)Comment on Z-Mart's relative position.

Quizplus · Accepted Answer

The Answer of The following information pertains to Z-Mart,its competition,and the industry standards.  The industry standard for the current ratio is 1.8 to 1,and for the acid-test ratio,1 to 1.Instructions:
(1)Calculate the current ratio and quick ratio for each firm.
(2)Rank the firms in decreasing order of liquidity.
(3)Comment on Z-Mart's relative position.

The Following Information Pertains to Z-Mart,its Competition,and the Industry Standards