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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?
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