Macromedia, Inc. designs and markets computer software products. Following are the company€™s year-end current assets and current liabilities (in alphabetical order) for two recent years.

Required:
(a) Compute Macromedia€™s quick ratios for Years 1 and 2. Did this ratio improve or weaken between the end of Year1 and the end of Year 2? Explain your answer.
(b) Briefly discusses factors that might have accounted for the change in Macromedia€™s liquidity position between the end of Year 1 and the end of Year 2.

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ear Year 2 Accounts payable Accounts receivable (net) Accrued liabilities Cash and cash equivalents Inventory Other current liabilities Prepaid expenses Short-term investments Unearned revenue 3,492 4,230 7,601 347 1,264 29,751 2,767 6,007 $11,364 8,04019,601 8,956 7,829 18,568 331 4,115 90,833 1,235