BackgroundJimmy's Sweets Company sells a lovely range of irresistible sweets to thegeneral public.Jimmy has calculated the following ratio analysis for the years ending 2020and 2019 below:20202019Current Ratio3.201.50Quick Ratio0.301.20Inventory Turnover (days)17 days22 daysAccounts Receivable Turnover (days)62 days 32 daysQuestionWhich answer below is the correct interpretation of the change in eachratio, from 2019 to 2020?Select one:O a. Current Ratio is worse, Quick Ratio is worse, InventoryTurnover is worse, Accounts Receivable Turnover is worse.O b. Current Ratio is better, Quick Ratio is better, Inventory Turnover isbetter, Accounts Receivable Turnover is better.O c. Current Ratio is better, Quick Ratio is worse, InventoryTurnover is better, Accounts Receivable Turnover is better.O d. Current Ratio is better, Quick Ratio is worse, InventoryTurnover is better, Accounts Receivable Turnover is worse.

Introduction:- Ratio analysis is used compare the line items present in the financial statements of…

O a. Current Ratio is worse, Quick Ratio is worse, Inventory Turnover is worse, Accounts Receivable Turnover is worse. O b. Current Ratio is better, Quick Ratio is better, Inventory Turnov- better, Accounts Receivable Turnover is better. O c. Current Ratio is better, Quick Ratio is worse, Inventory Turnover is better, Accounts Receivable Turnover is better. O d. Current Ratio is better, Quick Ratio is worse, Inventory Turnover is better, Accounts Receivable Turnover is worse.

O a. Current Ratio is worse, Quick Ratio is worse, Inventory Turnover is worse, Accounts Receivable Turnover is worse. O b. Current Ratio is better, Quick Ratio is better, Inventory Turnov- better, Accounts Receivable Turnover is better. O c. Current Ratio is better, Quick Ratio is worse, Inventory Turnover is better, Accounts Receivable Turnover is better. O d. Current Ratio is better, Quick Ratio is worse, Inventory Turnover is better, Accounts Receivable Turnover is worse.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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