CCB Co. had the following current assets and liabilities for two comparative years:
|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Current assets:
|
|
|
|
Cash
|
$ 506,000
|
$ 524,000
|
|
Accounts receivable
|
354,000
|
364,000
|
|
Inventory
|
240,000
|
200,000
|
|
Total current assets
|
$1,100,000
|
$1,088,000
|
|
Current liabilities:
|
|
|
|
Current portion of long-term debt
|
$ 160,000
|
$ 120,000
|
|
Accounts payable
|
265,000
|
220,000
|
|
Accrued and other current liabilities
|
435,000
|
400,000
|
|
Total current liabilities
|
$ 860,000
|
$ 740,000
|
a. Determine the quick ratio for December 31, 2012 and 2011.
b. Interpret the change in the quick ratio between the two balance sheet dates.