1. Based upon the results of your analysis in 1. above, assess the Company's overall liquidity position....

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1. Based upon the results of your analysis in 1. above, assess the Company's overall liquidity position. Explain which ratio indicates particular strengths and/or weaknesses. Assume the following industry averages:
Working Capital will vary in proportion to the size of the firm
Current Ratio is 2.00
Acid-Test (Quick) Ratio is 1.60
2. Explain how Working Capital and Current Ratio are related. Would you expect firms with large amounts of Working Capital to always have high Current Ratios?
1. Based upon the results of your analysis in 1.
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Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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