PE 10-8A Quick ratio
Nabors Company reported the following current assets and liabilities for December 31, 2014 and 2013:
| Dec. 31, 2014 | Dec. 31, 2013 | |
| Cash | $ 650 | $ 680 |
| Temporary investments | 1,500 | 1,550 |
| Accounts receivable | 700 | 770 |
| Inventory | 1,250 | 1,400 |
| Accounts payable | 2,375 | 2,000 |
a. Compute the quick ratio for December 31, 2014 and 2013.
b. Interpret the company’s quick ratio. Is the quick ratio improving or declining?
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