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Zara is a clothing designer, marketer, and distributor. The company reported the following in recent balance sheets (amounts in thousands):
	September	December
30, 2020	31, 2019
Assets
Current Assets:
Cash	$	76,924	$	96,562
Accounts Receivable		84,216		61,150
Inventories		28,156		22,780
Other Current Assets		6,592		6,082
Total Current Assets		195,888		186,574
Property, Equipment, and Other Long-term Assets		59,528		30,320
Total Assets	$	255,416	$	216,894
Liabilities and Shareholders Equity
Current Liabilities:
Accounts Payable	$	21,007	$	20,494
Other Current Liabilities		13,780		13,333
Income Taxes Payable		5,312
Total Current Liabilities		40,099		33,827
Long-Term Liabilities		3,509		1,212
Shareholders Equity		211,808		181,855
Total Liabilities and Shareholders Equity	$	255,416	$	216,894
Required:
PART 1
Calculate the current ratio at September 30, 2020, and December 31, 2019. (Round your answers to 2 decimal places.)
PART 2
Did the companys current ratio increase or decrease? Explain.
PART 3
What does this imply about the companys ability to pay its current liabilities as they come due? Explain.

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