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Selected financial ratios for Front Room Decorating Incorporated are as follows: Current ratio Accounts receivable turnover Inventory turnover 2021 2.47:1 7.00 times 9.50 times 2020

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Selected financial ratios for Front Room Decorating Incorporated are as follows: Current ratio Accounts receivable turnover Inventory turnover 2021 2.47:1 7.00 times 9.50 times 2020 1.98:1 11.70 times 9.11 times 2012 1.74:1 17.50 times 8.87 times Front Room's current ratio increased in 2021. From an analysis of the above numbers, the most likely cause for the increase is O the company's cash has increased. the company borrowed on its line of credit to repay some current liabilities. O the company's accounts receivable have increased. O the company's inventory has increased

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