Harrison Company Calculated the Following Amounts Concerning Its Financial Information

question 188

Essay

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31,2017 and 2016:
​
$\begin{array}{lrr}&2018&2017\\\text { Current ratio } & 3 . \overline{1 \text { to } 1} & 2.0 \overline{\text { to }} 1 \\\text { Profit margin } & 22 \% & 18 \%\end{array}$ Required
Suppose Harrison Company had a decrease in its cash account from 2017 to 2018.Would the other current asset amounts have increased or decreased? Explain.

---

Definitions:

Shifts Into Reverse

The action of changing a vehicle's transmission setting to allow backward movement.

Pilot Shaft

A shaft used to ensure the correct alignment of two or more components of a machine during assembly or operation.

Clutch Fork Shaft

A component in manual transmissions that transfers force from the clutch pedal to disengage the clutch from the flywheel.

Transmission Input Shaft

The shaft in a transmission that is driven by the engine output, transferring power to the transmission gears.