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

question 152

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.
-When assessing the above ratios on an overall basis, most analysts would conclude that the company's liquidity

• A) improved.
• B) declined.
• C) remained unchanged.
• D) cannot be determined from the information provided.

---

Definitions:

Paired Bar Charts

A graphical display of information using two bars side by side at various heights to compare two sets of data.

Geographic Regions

Specific areas or locations defined by natural or artificial boundaries, often characterized by specific climatic conditions, topography, or cultural attributes.

Specific Numbers

Exact figures or quantities that are mentioned or used to quantify something.

Infographic

An infographic is a visual representation of information or data, often incorporating charts, diagrams, and illustrations to make complex information easily understandable.