Use the Following Information for Questions 98 Based Upon an Analysis of the Above Information, Which

Multiple Choice

Use the following information for questions .
Selected financial ratios for Front Room Decorating Incorporated are as follows: $\begin{array}{llll}&2013&2012&2011\\\text { Current ratio } & 2.50: 1 & 2.0: 1 & 1.75: 1 \\\text { Accounts receivable turnover } & 7 \text { times } & 12 \text { times } & 18 \text { times } \\\text { Inventory turnover } & 9 \text { times } & 9.1 \text { times } & 8.9 \text { times }\end{array}$ 98 Based upon an analysis of the above information, which of the following statements most accurately describes Front Room's financial results for 2013?
a. The company is selling more inventory.
b. The company is taking longer to collect its accounts receivable.
c. The company's current ratio deteriorated.
d. The company's liquidity improved.
-Front Room's current ratio increased in 2013. From an analysis of the above numbers, the most likely cause for the increase is

A) the company's cash has increased.
B) the company's inventory has increased.
C) the company's accounts receivable have increased.
D) the company borrowed on its line of credit to repay some current liabilities.