Quick Ratio

Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:

				Current Year		Previous Year
Current assets:
	Cash			$ 486,000		$ 500,000
	Accounts receivable			210,000		200,000
	Inventory			375,000		350,000
		Total current assets		$1,071,000		$1,050,000
Current liabilities:
	Current portion of long-term debt			$ 145,000		$ 110,000
	Accounts payable			175,000		150,000
	Accrued and other current liabilities			260,000		240,000
		Total current liabilities		$ 580,000		$ 500,000

a. Determine the quick ratio for December 31 of both years. If required, round your answers to one decimal place.

	Quick Ratio
Previous year: need answer
Current year: need answer

b. How did the quick ratio change between the two balance sheet dates? increase/decrease

Which statement below describes the change between the two balance sheet dates?

both quick assets and current liabilities declined

both quick assets and current liabilities increased

quick assets increased and current liabilites declines

quick assets declines and current liabilites increased