Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: $\begin{array} { r r } &\underline { 2017 } & \underline { 2016 } \
\text {Current ratio }& 3.1 \text { to } 1 & 2.0 \text { to } 1 \
\text { Profit margin}& 22 \% & 18 \% \\end{array}$
REQUIRED:
Suppose Harrison Company had a decrease in its cash account from 2016 to 2017.Would the other current asset amounts have increased or decreased? Explain.

Question

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: $\begin{array} { r r } &\underline { 2017 } & \underline { 2016 } \
\text {Current ratio }& 3.1 \text { to } 1 & 2.0 \text { to } 1 \
\text { Profit margin}& 22 \% & 18 \% \\end{array}$ ​
REQUIRED:
Suppose Harrison Company had a decrease in its cash account from 2016 to 2017.Would the other current asset amounts have increased or decreased? Explain.

Quizplus · Accepted Answer

The Answer of Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: $\begin{array} { r r } &\underline { 2017 } & \underline { 2016 } \
\text {Current ratio }& 3.1 \text { to } 1 & 2.0 \text { to } 1 \
\text { Profit margin}& 22 \% & 18 \% \\end{array}$ ​
REQUIRED:
Suppose Harrison Company had a decrease in its cash account from 2016 to 2017.Would the other current asset amounts have increased or decreased? Explain.

Harrison Company Calculated the Following Amounts Concerning Its Financial Information