Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years:

a. Determine the quick ratio for December 31 of both years.

b. Interpret the change in the quick ratio between the two balance sheet dates.

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Current Year Previous Year Current assets: $ 486,000 210,000 Cash $ 500,000 Accounts receivable 200,000 Inventory 375,000 350,000 Total current assets $1,071,000 $1,050,000 Current liabilities: Current portion of long-term debt $ 145,000 $ 110,000 Accounts payable 175,000 150,000 Accrued and other current liabilities 260,000 $ 580,000 240,000 Total current liabilities $ 500,000