Delamy Design Ltd. is a clothing designer, marketer, and distributor. The company reported the following in recent balance sheets (amounts in thousands):

Required:
1. Calculate the current ratio at September 30, 2014, and December 31, 2013.
2. Did the company's current ratio increase or decrease? What does this imply about the company's ability to pay its current liabilities as they come due?
3. What would Delamy's current ratio have been if, on September 30, 2014, the company was to have paid down $10,000 of its Accounts Payable? Does paying down Accounts Payable in this case increase or decrease the current ratio?
4. Are the company's total assets financed primarily by liabilities or shareholders' equity at September 30, 2014?

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September 30, 2014 December 31, 2014 Assets Current Assets: $ 73,324 $ 92,962 Cash Accounts Receivable 81,336 25,816 58,270 20,440 Inventories Other Current Assets 5,512 5,002 Total Current Assets 185,988 54,128 176,674 Property, Equipment, and Other Long-Term Assets 25,820 Total Assets $240,116 $202,494 Liabilities and Shareholders' Equity Current Liabilities: $ 19,207 12,880 $ 18,694 10,633 Accounts Payable Other Current Liabilities Income Taxes Payable 3,512 Total Current Liabilities 35,599 1,709 29,327 Long-Term Liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity 312 172,855 $202,494 202,808 $240,116