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A company's current ratio is 3.5. Cash and accounts receivables of A Company are 35% of the total current assets. B Company's current ratio is
A company's current ratio is 3.5. Cash and accounts receivables of A Company are 35% of the total current assets. B Company's current ratio is 2.5. Cash and accounts receivables of B Company is 75% of the total current assets. Which company has better ability to pay its current obligations. Explain.
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