Quick Ratlo Smith and Sons, Inc. Income Statement 2016 2015 9,850 9,350 (5,500) (5,200) 4,350 4,150 Selling and administrative expenses (2,800) (2,700) 1,550 1,450 (300) (250) 1,250 1,200 (420) (400) 830 800 in millions) Net sales Cost of goods sold Gross profit Income from operations Interest expense income before income taxes income tax expense Net income Smith and Sons, Inc. Balance Sheet in millions) 2016 2015 Assets Current assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Property. plant & equipment, net 50 250 900 800 350 500 400 250 1,700 1,800 2,750 2,650 Other assets 5,700 5,900 10,150 10,350 Total Assets Liabilities and Stockholders Equity Current liabilities Long-term liabilities Total liabilities Stockholders' equity-common 2,850 2,750 5,000 5,400 7,850 8,150 2,300 2,200 Total Liabilities and Stockholders Equity 10,150 10.350 Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016. Round answers to two decimal places. 2015 2016 the company abliar?2 OThe decrease in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets improved. OThe increase in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets declined. OThe decrease in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets declined. The increase in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets improved