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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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