Quick Ratio EVANS and Sons, Inc. Income Statement (in millions)
2019 2018
Net sales $9,800 $9,300
Cost of goods sold (5,500) (5,200)
Gross profit 4,300 4,100
Selling and administrative expenses (2,800) (2,700)
Income from operations 1,500 1,400
Interest expense (300) (250)
Income before income taxes 1,200 1,150
Income tax expense (220) (200)
Net income $980 $950
EVANS and Sons, Inc. Balance Sheet (in millions)
2019 2018
Assets
Current assets
Cash and cash equivalents $100 $300
Accounts receivable 900 800
Inventory 500 650
Other current assets 400 250
Total current assets 1,900 2,000
Property, plant & equipment, net 2,600 2,500
Other assets 5,700 5,900
Total Assets $10,200 $10,400
Liabilities and Stockholders' Equity
Current liabilities $3,000 $2,900
Long-term liabilities 5,000 5,400
Total liabilities 8,000 8,300
Stockholders' equity-common 2,200 2,100
Total Liabilities and Stockholders' Equity $10,200 $10,400
Required :
1. Calculate the quick ratio for Evans & Sons, Inc., for 2018 and 2019.
Round answers to two decimal places.