In Year 1 the current ratio was 6.0 ($360 ? 60) and in Year 2 it was 4.3 ($430 ? $100). The current ratio has therefore decreased. In Year 1 the quick ratio was 2.67 ($160 ? $60) and in Year 2 it was 1.3 ($130 ? $100). The quick ratio has also decreased. Both ratios decreased in Year 2 compared to Year 1. See the correct answer for a complete explanation. Both ratios decreased in Year 2 compared to Year 1. See the correct answer for a complete explanation. Both ratios decreased in Year 2 compared to Year 1. See the correct answer for a complete explanation.
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