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Grangel Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash
Grangel Company reported the following current assets and liabilities for December 31 for two recent years:
Dec. 31, Current Year | Dec. 31, Previous Year | |||
Cash | $1,560 | $1,850 | ||
Temporary investments | 3,410 | 4,140 | ||
Accounts receivable | 7,100 | 2,810 | ||
Inventory | 2,560 | 2,480 | ||
Accounts payable | 7,100 | 5,500 |
a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place.
Quick Ratio | |
December 31, current year | |
December 31, previous year |
b. Is the quick ratio improving or declining?
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