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Fraser Forestry Ltd. has provided you with the following selected information from 2020 and 2021: 2021 2020 Cash $15,500 $10,200 Accounts receivable 18,000 30,000 22,000
Fraser Forestry Ltd. has provided you with the following selected information from 2020 and 2021: 2021 2020 Cash $15,500 $10,200 Accounts receivable 18,000 30,000 22,000 60,000 Short-term investments Inventory 29,000 38,500 Total current assets 92,500 130,700 Total current liabilities 101,000 122,000 Which of the following best interprets Fraser's current ratio analysis? Current ratio has improved compared to prior year, increasing from 0.6 to 1.8. Current ratio has weakened compared to prior year, decreasing from 0.8 to 0.6. Current ratio has improved compared to prior year, increasing from 0.9 to 1.1. Current ratio has weakened compared to prior year, decreasing from 1.1 to 0.9
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