The current assets and current liabilities for Kolbie Company and Newton Company are as follows: 
*These represent prepaid expenses and other non-quick current assets.
(a) Determine the quick ratio for both companies.Round to two decimal places.
(b) Interpret the quick ratio difference between the two companies.
Definitions:
GAAP
Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States for financial reporting.
SEC
The Securities and Exchange Commission, a U.S. government agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.
Fair Value
An estimate of the market value of an asset or liability, based on the current market price or the price for similar assets.
Exchange Transactions
Transactions in which each party to the deal exchanges goods or services of comparable value; this can include trade of goods, services, or financial assets.
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