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A company's balance sheet shows total assets of $800,000 and total liabilities of $400,000. If the owner's equity is $400,000, calculate the current ratio and
A company's balance sheet shows total assets of $800,000 and total liabilities of $400,000. If the owner's equity is $400,000, calculate the current ratio and discuss its implications for the company's liquidity and financial health. Dive into the components of the current ratio, including current assets and current liabilities, and their role in assessing a company's ability to meet short-term obligations and fund operating activities.
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