Describe how the current ratio is used to analyze financial results?What are the components of the ratio
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Question:
- Current assets: 2013—$262,500; 2014—$310,500.
- Current liabilities: 2013—$150,000; 2014—$172,500.
- Determine the current ratio for 2013 and 2014. Does the change in the current ratio from 2013 to 2014 indicate a favorable or unfavorable trend?
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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