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Dalia Co. has identified an activity cost pool to which it has allocated estimated overhead of $1,920,000. It has estimated use of cost drivers for

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Dalia Co. has identified an activity cost pool to which it has allocated estimated overhead of $1,920,000. It has estimated use of cost drivers for that activity to be 160,000 inspections. Product No of Inspections Widgets 40,000 Gadgets 30,000 Targets 90,000 The overhead assigned to each target is: $360,000 rofit This ratio expresses the relationship be $640,000. generated during a period and the average long-term cap $1,080,000 business. $90,000 Alex business has following results 2014 2015 Current ratio 2.0 1.6 Acid test ratio 0.8 0.6 Based on the above information, which of following is false? > Improvement in liquidity from 2014 to 2015 Business had less liquid assets compared to it liquid liabilities in 2014 Business had less liquid assets compared to it liquid liabilities in 2015 Decline in liquidity from 2014 to 2015

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