Urban-Wear Clothes Co. had the following current assets and liabilities for two comparative years:

a. Determine the quick ratio for December 31, 2008 and 2007.

b. Interpret the change in the quick ratio between the two balance sheet dates.objs. \(2,3,4\)

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Dec. 31, 2008 Dec. 31, 2007 Current assets: Cash Accounts receivable Inventory Total current assets Current liabilities: $140,000 250,000 $205,000 245,000 300,000 $690,000 180,000 $630,000 Current portion of long-term debt $ 50,000 Accounts payable Accrued expenses payable Total current liabilities 200,000 140,000 $390,000 $ 50,000 190,000 135,000 $375,000