Lincoln Corporation has a current ratio of 1.1. Joe Investor has always been told that a corporation's

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Lincoln Corporation has a current ratio of 1.1. Joe Investor has always been told that a corporation's current ratio should exceed 2.0. Lincoln argues that its ratio is low because it has a minimal amount of inventory on hand so as to reduce operating costs. Lincoln also points out that it has significant available lines of credit. Is Joe still correct? What other measures might he check?

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471169192

1st Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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