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Pine Co has the following ratios for 2018 and 2017: 2018 2017 Current ratio 0.9 : 1 1.3 : 1 Trade receivable days 74 days
Pine Co has the following ratios for 2018 and 2017:
2018 | 2017 | |
Current ratio | 0.9 : 1 | 1.3 : 1 |
Trade receivable days | 74 days | 51 days |
Trade payable days | 31 days | 45 days |
Inventory days | 42 days | 37 days |
Which of the following is true?
Group of answer choices
Pine Co is suffering from a worsening liquidity position in 2018
Pine Co's liquidity and working capital have improved in 2018
Pine Co is receiving cash from customers more quickly in 2018 than in 2017
Pine Co is taking longer to pay suppliers in 2018 than in 2017
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