Evergreen Company turns its revenues into cash inflows within 30 days on a regular basis. River Company
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Evergreen Company turns its revenues into cash inflows within 30 days on a regular basis. River Company allows its customers to buy on credit and they typically don’t collect these accounts receivable for many months. The current ratios of both companies might be identical.
Investors are likely to say that River Company’s current assets are of a
[higher / lower] quality than Evergreen’s.
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