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Selected Financial Ratios for Birdnest Incorporated Are as Follows Based Upon an Analysis of the Above Information, Which of

Question 111

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Selected financial ratios for Birdnest Incorporated are as follows: 202120202019 Current ratio 2.50:12.0:11.75:1 Accounts receivable turnover 7 times 12 times 18 times  Inventory turnover 9 times 9.1 times 8.9 times \begin{array} { l r r r } & 2021 & 2020 & 2019 \\\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} Based upon an analysis of the above information, which of the following statements most accurately describes Birdnests financial results for 2021?


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.

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