Harrison Company Calculated the Following Amounts Concerning Its Financial Information

question 80

Essay

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31,2018 and 2017:
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$\begin{array}{lrr}&2018&2017\\\text { Current ratio } & 3.1 \text { to } 1 & 2.0 \text { to } 1 \\\text { Profit margin } & 22 \% & 18 \%\end{array}$ Required:
Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

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Definitions:

Intracellular

Situated or happening inside a cell or cells.

Intravenous Catheter

A tube inserted into a vein to deliver fluids, medication, or nutrients directly into the bloodstream.

Phlebitis

Inflammation of a vein, often accompanied by pain and swelling, sometimes due to an infection or from the presence of an intravenous (IV) catheter.

Edematous

Describes tissue that is swollen due to the accumulation of excess fluid in the body's tissues.