The following selected ratios are available for Pampered Pets Inc.:

Instructions
(a) Has the company's collection of its receivables improved or weakened over the last three years?
(b) Is the company selling its inventory faster or slower than in past years?
(c) Overall, has the company's liquidity improved or weakened over the last three years? Explain.

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2012 Current ratio Acid-test Receivables turnover Inventory turnover Operating cycle 2014 2.6:1 0.8:1 6.7 times 7.5 times 103 days 2013 1.4:1 0.6:1 7.4 times 8.7 times 91 days 0.7:1 8.2 times 9.9 times 81 days