CCB Co. had the following current assets and liabilities for two comparative years:

a. Determine the quick ratio for December 31, 2012 and 2011.
b. Interpret the change in the quick ratio between the two balance sheetdates.

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Dec. 31, 2012 Dec. 31, 2011 Current assets: Cash Accounts receivable Inventory 506,000 354,000 240,000 $1,100,000 524,000 364,000 200,000 1,088,000 Total current assets Current liabilities: Current portion of long-term debt Accounts payable Accrued and other current liabilities 160,000 265,000 435,000 $860,000 120,000 220,000 400,000 740,000 Total current liabilities