The financial statements of Flathead Lake Manufacturing Company are shown below.

Note: The common shares are trading in the stock market for $15 per share.
Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's current ratio for 2017 indicates that Flathead's liquidity has ________ since 2016.
A) risen
B) fallen
C) stayed the same
D) The answer cannot be determined from the information given.

Question

The financial statements of Flathead Lake Manufacturing Company are shown below.

Note: The common shares are trading in the stock market for $15 per share.
Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's current ratio for 2017 indicates that Flathead's liquidity has ________ since 2016.
A) risen 
B) fallen 
C) stayed the same 
D) The answer cannot be determined from the information given.

Quizplus · Accepted Answer

CR2016 = $1,100,000/$700,000 = 1.571; CR2017 = $1,150,000/$800,000 = 1.438

The Financial Statements of Flathead Lake Manufacturing Company Are Shown