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A financial analysis of two businesses, Company A and Company B, indicated that Company A has a current ratio of 3.0, while Company B has
A financial analysis of two businesses, Company A and Company B, indicated that Company A has a current ratio of 3.0, while Company B has a current ratio of 1.5. There results are an indication that
- A.
Company A's ability to pay its current liabilities far exceeds that of Company B.
- B.
Company A generates twice the rate of profit per dollar of sales than Company B.
- C.
Company A has twice the amount of current assets that Company B has.
- D.
A greater proportion of Company A's assets are financed with debt versus CompanyB
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