Balance Sheet (partial) Cash $5,852,000 Short-term investments 4,927,000 Accounts receivable 6,485,000 Inventory 20,840,000 Prepaid assets 557,000 Total current assets $38,661,000 Total current liabilities $18,044,000 (a) Calculate the (1) current ratio and (2) acid-test ratio. (Round current ratio to 1 de places, e.g. 52.75.) 1. Current ratio 2. Acid-test ratio View Policies Current Attempt in Progress For each of the following profitability ratios, indicate whether the change would be viewed as an improvement or deterioration: (a) An increase in the gross profit margin (b) A decrease in asset turnover (c) An increase in return on equity (d) A decrease in earnings per share (e) A decrease in the profit margin eTextbook and Media