rom 23.7 percent in 1991 and 23.6 percent in 1990. The reduction in inventory improved the firms liquidity, and this improvement would be viewed favorably by both creditors and investors.
Deferred income taxes in 1992 represented 6.7 percent of total current assets. This proportion was down from 7.2 percent in 1991 and 8.0 percent in 1990. The firm's income tax deferrals are the result of timing differences in income recognition for financial reporting and tax reporting purposes. This current asset reflects taxes already paid in income that has yet to be recognized. As the income on which these taxes were based is recognized, the level of this current asset will be reduced.
Prepaid expenses and other current assets in 1992 represented 2.8 percent of total current assets. This proportion is very nearly the same as the 2.7 percent in 1991, but is down from the 3.1 percent of 1990. As these expenses are r
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