The following selected ratios are available for Pampered Pets Inc. for the three most recent years:
______________________2018 2017 2016
Current ratio........................2.7:1....................2.4:1................2.1:1
Receivables turnover....6.7 times.............7.4 times..........8.2 times
Inventory turnover........7.7 times............8.6 times...........9.9 times
Instructions
(a) Has the company's collection of its receivables improved or deteriorated over these three years?
(b) Is the company selling its inventory faster or slower than in past years?
(c) Overall, has the company's liquidity improved or deteriorated over these three years? Explain.