A company is applying for a line of credit at a bank. The companys current ratio is

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A company is applying for a line of credit at a bank. The company’s current ratio is 2, but Inventory is 75 percent of current assets. Discuss why the bank might have concerns about extending a line of credit even though the current ratio is 2.

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Managerial Accounting

ISBN: 9781119577720

7th Edition

Authors: James Jiambalvo

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Question Posted: Jun 24, 2020 01:27 AM

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A company is applying for a line of credit at a bank. The companys current ratio is

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Many of the companys assets may be inventory The company may n...View the full answer

Managerial Accounting

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