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Assume the Following Data: Current Assets = 500; Current Liabilities

Question 8

Multiple Choice

Assume the following data: Current assets = 500; Current liabilities = 250; Inventory = 200; Accounts receivable = 200. Calculate the cash ratio. (Assume that the firm has no marketable securities.)


A) 0.4
B) 2.0
C) 1.5
D) 1.2

Correct Answer:

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