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Megatrend Industries is investigating its several divisions for potential opportunities for better management of working capital. The Investigation was motivated by discussions with the company's

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Megatrend Industries is investigating its several divisions for potential opportunities for better management of working capital. The Investigation was motivated by discussions with the company's bank regarding recent declines in the company's liquidity ratios Company management is using Tableau to help visualize the current ratio the acid-test ratio, and their components for each of the company's 18 divisions. As part of the investigating team, you are inspecting this Tableau Dashboard depicting those factors for the Chemical Transformation Division in each of the three most recent years. Industry norms for the current ratio and the acid-test ratios are 12 and 65, respectively. Acid-Test and Current Ratios Acid fest Ratio Current Ratio 1.50 LOD A 0.00 2019 2030 2021 Current Assets & Liabilities 3019 Inventories Quick Assets 2030 Current Asset Composition 3011 10% SOK JOK LOK SOK 20 20K TOK 10K OK Cart Curve Curs Cart Cart Carret A Lisbet Am Liabiles Les OK 2019 2030 2021 Required 1 Required 2 Required 3 Required 4 Required 5 What were the Chemical Transformation Division's current ratios in 2019 and in 20217 129 in 2019 and 1.46 in 2021 00.72 in 2019 and 0 54 in 2021 10.54 in 2019 and 0.72 in 2021 Required 1 Required 2 Required 3 Required 4 Required 5 From your analysis of the data, does the Chemical Transformation Division appear to be contributing to the decline in the company's current ratio? TOYes ONO Required 1 Required 2 Required 3 Required 4 Required 5 OO Which component of the current ratio is growing faster: current assets or current liabilities? Current assets Current liabilities Required i Required 2 Required 3 Required 4 Required 5 Does the chemical Transformation Division appear to be contributing to the decline in the company's acid-test ratio? 10 Yes ONO Required 1 Required 2 Required 3 Required 4 Required 5 The change in which component of the acid-test ratio would you recommend for further investigation: quick assets or current labilities? Current liabilities Quick assets

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