The ratios in Table 8.4 have been computed for a manufacturing business and a supermarket. Discuss why

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The ratios in Table 8.4 have been computed for a manufacturing business and a supermarket.

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Discuss why it is possible for these two companies to operate successfully with such different liquidity ratios.

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Accounting A Smart Approach

ISBN: 9780199587414

1st Edition

Authors: Mary Carey, Jane Towers Clark, Cathy Knowles

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Question Posted: May 14, 2024 05:01 AM

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The ratios in Table 8.4 have been computed for a manufacturing business and a supermarket. Discuss why

Question:

Table 8.4 Current ratio Manufacturer of sugars, starches, etc. from carbohydrates 1.48:1 Acid test ratio 0.96:1 Supermarket chain 0.45:1 0.24:1

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Different types of business can operate successfully with very different current and acid test ratio...View the full answer

Accounting A Smart Approach

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