Columbia Sportswear Company reported the following in recent balance sheets (amounts in thousands).

Required:
1. Calculate the current ratio at September 30, 2013 and December 31, 2012.
2. Did the company€™s current ratio increase or decrease? What does this imply about the company€™s ability to pay its current liabilities as they come due?
3. What would Columbia€™s current ratio have been on September 30, 2013, if the company were to have paid down $ 10,000 of its Accounts Payable? Does paying down Accounts Payable in this case increase or decrease the current ratio?
4. Are the company€™s total assets financed primarily by liabilities or stockholders€™ equity at September 30, 2013?

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September 30, 2013 December 31. 2012 Assets Current Assets 274.200 29.000 378,000 410,100 88,900 1.180,200 73.400 280,700 $1.534.300 Cash 290.800 44.700 334.300 363.300 89.500 1.122,600 75,800 260.500 $1458,900 Short-term Investments Accounts Receivable Inventory Prepaid Rent Total Curnent Assets Software Equipment Total Assets Liabilities and Shareholder's Equity Liabilities Current Liabilitics S 261.400 0 9.300 270,700 43,800 314.500 247400 200 4.500 252.100 40.600 292.700 Accounts Payable Notes Payable (short-term) Income Tax Payable Total Current Ltabties Notes Payable (long-term) Total Liabilities Stockholders Equity Common Stock Retained Earnings Total Shareholders' Equity Total Liabilties and Shareholders' Equity 44.400 1.175.400 1.219,800 1,534.300 24.800 1.141.400 1,166.200 $1,458,900