Accounting Discussion Question

Accounting
Tutor: None Selected Time limit: 1 Day

Now look at the quick ratio. How does it differ from the Current Ratio? Calculate and discuss the quick ratio for Coca Cola Inc from the 2013 Annual Report numbers. What causes the difference between the current and quick ratio?

Feb 18th, 2015

We can calculate the current ratio by

  • Current Assets/Current liabilities
A liquidity ratio calculated as current assets divided by current liabilities.

We can calculate the quick ratio by 

  • cash+ Account Receivable/Liabilities
A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.
Quick ratio of the coca cola company 2013 is :-  0.93
Current ratio of the coca cola company 2013 is:- 1.24


Feb 18th, 2015

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Feb 18th, 2015
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Feb 18th, 2015
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