Question: Irma's current ratio is 2 . 5 . This means that for every dollar of current liabilities, Irma has $ 2 . 5 0 in

Irma's current ratio is 2.5. This means that
for every dollar of current liabilities, Irma has $2.50 in current assets.
for every dollar of current assets, Irma has $2.50 in current liabilities.
Irma can borrow 2.5 times her annual sales.
Irma has enough cash to pay her debts for the next 2.5 years.
Irma's current ratio is 2 . 5 . This means that

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