1. If the company has a Current ratio: 1.4; quick ratio 1.2; cash ratio 0.5, can the company fulfill its short-term obligations? and explain why or why not
2. Explain what is meant by the Average collection period? What information do companies get from the calculation of the Average collection period? elaborate
3. What are the requirements that must be met for credit? Is the amount of assets important in applying for credit? please elaborate

Answer rating: 100% (QA)

1 The firm will is able to fulfil its shortterm obligations because it is liquid according to its liquidity ratios The current ratio of 14 indicates that the firm has 140 worth of current assets again... View the full answer