Tappert Company reported the following current assets and liabilities for December 31, 2012 and 2011:
|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Cash
|
$ 990
|
$ 860
|
|
Temporary investments
|
1,910
|
1,500
|
|
Accounts receivable
|
1,600
|
1,280
|
|
Inventory
|
2,000
|
1,400
|
|
Accounts payable
|
3,000
|
2,800
|
a. Compute the quick ratio for December 31, 2012 and 2011.
b. Interpret the company's quick ratio. Is the quick ratio improving or declining?