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Question 22 3 pts 1. Complete the following balance sheet by calculating the correct value and filling in the blanks for a, b just need #24 answered
U words </> Question 24 5 pts Calculate and interpret the current ratio for this example. Is this a liquidity or solvency mea
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Answer #1
Current Ratio= Current assets/Current Liabilities
Current Assets 250895
Current Liabilities 232421
Current Ratio           1.08

Current ratio measures a company's ability to meet its short term obligations. It is a liquidity measure which means the higher the ratio the more liquidity there is. A ratio of less than 1 indicates that a company may have difficulties in paying its short term liabilities.

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