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.

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