Quick Ratio

Smith and Sons, Inc. Income Statement
(in millions)	2016	2015
Net sales	$10,000	$9,500
Cost of goods sold	(5,500)	(5,200)
Gross profit	4,500	4,300
Selling and administrative expenses	(2,800)	(2,700)
Income from operations	1,700	1,600
Interest expense	(300)	(250)
Income before income taxes	1,400	1,350
Income tax expense	(420)	(400)
Net income	$980	$950

Smith and Sons, Inc. Balance Sheet
(in millions)	2016	2015
Assets
Current assets
Cash and cash equivalents	$200	$400
Accounts receivable	900	800
Inventory	500	650
Other current assets	400	250
Total current assets	2,000	2,100
Property, plant & equipment, net	2,600	2,500
Other assets	5,700	5,900
Total Assets	$10,300	$10,500
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	2,300	2,200
Total Liabilities and Stockholders' Equity	$10,300	$10,500

Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016. Round answers to two decimal places.

2015	Answer
2016	Answer