The following selected information (in thousands) was taken from Fruition Collections Ltd.'s December 31 statement of financial position:

Instructions
(a) Calculate the current ratio for each of the two years.
(1) Based only on this information, would you say that the company's liquidity is improving or getting weaker in 2018?
(2) What additional information should you request to complete your assessment of liquidity?
(b) Suppose that Fruition Collections used $1 million of its cash to pay off $1 million of its accounts payable. How would this transaction change the current ratio for 2018?
(c) At December 31, 2018, Fruition Collections had an unused operating line of credit of $4 million. Does this information affect the assessment of the company's short-term liquidity that you made in part E10.9 (a) above?

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2018 2017 Current assets Cash Accounts receivable 2,1471,575 Inventories Other current assets322 19 Total current assets $4.744 $4.298 Total current liabilities $3.011 $2.98q $1,074 $1,521 1,201 1,010