Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: $\begin{array}{lrr}
& \underline{2017} & \underline{2016} \
\text { Current ratio } & 3.1 \text { to } 1 & 2.0 \text { to } 1 \
\text { Profit margin } & 22 \% & 18 \%
\end{array}$
Required:
Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

Question

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: $\begin{array}{lrr} 
& \underline{2017} & \underline{2016} \
\text { Current ratio } & 3.1 \text { to } 1 & 2.0 \text { to } 1 \
\text { Profit margin } & 22 \% & 18 \%
\end{array}$ ​
Required:
Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

Quizplus · Accepted Answer

The Answer of Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: $\begin{array}{lrr} 
& \underline{2017} & \underline{2016} \
\text { Current ratio } & 3.1 \text { to } 1 & 2.0 \text { to } 1 \
\text { Profit margin } & 22 \% & 18 \%
\end{array}$ ​
Required:
Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

Harrison Company Calculated the Following Amounts Concerning Its Financial Information