Exercise 10-18 Underwood Boutique reported the following financial data for 2017 and 2016. UNDERWOOD BOUTIQUE Balance Sheet (partial) September 30 (in thousands) 2017 2016 Current assets Cash and short-term deposits Accounts receivable Inventories Other current assets $2,574 2,147 1,201 322 $6,244 $4,503 $1,021 1,575 1,010 192 $3,798 $2,619 Total current assets Current liabilities Your answer is correct. Calculate the current ratio for Underwood Boutique for 2017 and 2016. (Round answers to 2 decimal places, e.g. 1.25:1) 2017 2016 Current ratio 1.39 1.45 SHOW SOLUTION LINK TO TEXT X Your answer is incorrect. Try again Suppose that at the end of 2017, Underwood Boutique used $1.5 million cash to pay off $1.5 million of accounts payable. How would its current ratio change? (Round answer to 2 decimal places, e.g. 1.25:1) Current ratio 4.24 Click if you would like to Show Work for this question: Open Show Work