Use the Following Information for Questions 98 Based Upon an Analysis of the Above Information, Which

question 32

Multiple Choice

Use the following information for questions .
Selected financial ratios for Front Room Decorating Incorporated are as follows: $\begin{array}{llll}&2013&2012&2011\\\text { Current ratio } & 2.50: 1 & 2.0: 1 & 1.75: 1 \\\text { Accounts receivable turnover } & 7 \text { times } & 12 \text { times } & 18 \text { times } \\\text { Inventory turnover } & 9 \text { times } & 9.1 \text { times } & 8.9 \text { times }\end{array}$ 98 Based upon an analysis of the above information, which of the following statements most accurately describes Front Room's financial results for 2013?
a. The company is selling more inventory.
b. The company is taking longer to collect its accounts receivable.
c. The company's current ratio deteriorated.
d. The company's liquidity improved.
-Front Room's current ratio increased in 2013. From an analysis of the above numbers, the most likely cause for the increase is

• A) the company's cash has increased.
• B) the company's inventory has increased.
• C) the company's accounts receivable have increased.
• D) the company borrowed on its line of credit to repay some current liabilities.

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Definitions:

Equivalent

A term used to describe a quantitative relationship in chemistry, representing entities that have the same capacity to react.

Diastereotopic

Diastereotopic refers to hydrogen atoms or groups in a molecule that are not identical and are replaced by another atom or group, leading to diastereomers.

Enantiotopic

Refers to atoms or groups in a molecule that are mirror images of each other but not superimposable, often discussed in the context of chirality in organic chemistry.

Chemically Equivalent

Term used to describe atoms or groups in a molecule that have identical chemical environments and exhibit the same chemical behavior.