34.15 Thatch plc's current ratio this year is 1.33:1 compared to that of 1.25:1 last year. Which of the following would be possible explanations?

1 Thatch made an unusually large sale immediately prior to the year end.

2 Thatch paid its payables earlier than usual out of a bank overdraft.

3 Thatch made an unusually large purchase of goods for cash immediately prior to the year end and these goods remain in inventory.

4 Thatch paid its payables earlier than usual out of a positive cash balance.

A 1 and 2 only B

2 and 3 only C

1 and 3 only D

1 and 4 only

(2 marks)