Urban-Wear Clothes Co. had the following current assets and liabilities for two comparative years:

a. Determine the quick ratio for December 31, 2008 and 2007.
b. Interpret the change in the quick ratio between the two balance sheetdates.

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Dec. 31, 2008 Dec. 31, 2007 Current assets Cash Accounts receivable Inventory 140,000 250,000 300,000 $690,000 $205,000 245,000 180,000 $630,000 Total current assets Current liabilities: Current portion of long-term debt Accounts payable Accrued 50,000 200,000 140,000 $390,000 50,000 190,000 135,000 5375,000 expenses payable Total current liabilities