The current portion of a company's balance sheets for the past three years are as...
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Accounting
The current portion of a company's balance sheets for the past three years are as follows:
20Y1
20Y2
20Y3
Cash
$ 97
$ 154
$110
Accounts receivable
885
770
785
Inventory
1,020
902
1,075
Other current assets
23
44
40
Total current assets
$ 2,025
$ 1,870
$ 2,010
Notes payable
490
486
592
Current portion LTD
68
66
62
Accounts payable
551
528
473
Accrued expenses
155
143
136
Other current liabilities
117
99
91
Total current liabilities
$ 1,381
$ 1,322
$ 1,354
Which of the following best describes the company's liquidity over the past three years?
The companys liquidity indicators remained relatively stable over the three year period. The companys liquidity indicators were mixed as the quick ratio improved but the current ratio declined over the three year period. The companys current ratio and quick ratio improved over the three year period indicating strong liquidity. The companys working capital position and quick ratio declined to their lowest points in 20Y3 indicating weakening liquidity.
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