Selected financial data for Shumway Ltd. are shown below.
(a) Calculate for each of 2018 and 2017 the
(1) Current ratio,
(2) Receivables turnover ratio, and
(3) Inventory turnover ratio.
(b) Based on these ratios, what conclusion(s) can be drawn about the company's liquidity?

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2018 2017 2016 Accounts receivable (gross) 850,000 750,000 $650,00o 1,020,000 980,00 840,000 2,100,000 2,000,000 1,700,000 1,000,000 1,100,000 1,250,000 6,420,0006,240,000 5,430,00o 4,540,000 4,550,0003,950,000 Inventory Total current assets Total current liabilities Net credit sales Cost of goods sold