Adieu Company reported the following current assets and current liabilities for two recent years:
Dec. 31, 20Y4 Dec. 31, 20Y3
Cash
$1,000
$1,000
Temporary investments
1,200
1,400
Accounts receivable
840
900
Inventory
2,100
2,500
Accounts payable
1,900
2,200
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
20Y4
Quick Ratio
20Y3
b. Is the quick ratio improving or declining?