Quick Ratio

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	$1,430		$1,290
Temporary investments	3,120		2,880
Accounts receivable	3,900		1,950
Inventory	2,340		2,300
Accounts payable	6,500		5,100

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?