Table 3.2
Dana Dairy Products Key Ratios Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010 Balance Sheet
Dana Dairy Products
December 31, 2010
-Since 2009, the liquidity of Dana Dairy Products ________. (See Table 3.2)
A) has deteriorated
B) remained the same
C) has improved
D) cannot be determined

Question

Table 3.2
Dana Dairy Products Key Ratios  Income Statement
Dana Dairy Products
For the Year Ended December 31, 2010  Balance Sheet
Dana Dairy Products
December 31, 2010 
-Since 2009, the liquidity of Dana Dairy Products ________. (See Table 3.2)
A) has deteriorated 
B) remained the same 
C) has improved 
D) cannot be determined

Quizplus · Accepted Answer

Dana Dairy Products' liquidity has deteriorated since 2009. This is evident from the fact that the company's current ratio has declined from 1.5 in 2009 to 1.2 in 2013. This indicates that the company has less current assets relative to its current liabilities, which could make it more difficult to meet its short-term obligations.

Table 3.2 Dana Dairy Products Key Ratios Income Statement