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.

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Definitions:

Home Depot

An American home improvement retail chain that supplies tools, construction products, and services.

High-Involvement Purchases

Buying decisions that are significant to the consumer, often associated with considerable expenditure and extensive pre-purchase research.

Consideration Set

Consideration Set consists of the brands or products a consumer seriously considers in the decision-making process before making a purchase.

Word-Of-Mouth Communication

Informal conversations among individuals about products, services, or experiences, often influencing buying decisions.