Question: You have been provided with the following ratios for two retail businesses. Use the ratios to evaluate and compare the liquidity situations of the twobusinesses.

You have been provided with the following ratios for two retail businesses. Use the ratios to evaluate and compare the liquidity situations of the twobusinesses.

Business ABusiness B Current ratio Quick ratio Inventory turnover ratio Accounts payable turnover ratio 1.26 0.75 3.1 4.56 1.75 0.38 2.60 3.65

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