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A lending officer is provided with the following Table 1 about the financial ratio of a business borrower ABC Ltd. ABC Ltd. is a durable-goods

A lending officer is provided with the following Table 1 about the financial ratio of a business borrower ABC Ltd. ABC Ltd. is a durable-goods producer and has a policy of giving 60 days' credit. Analyse the liquidity management of ABC Ltd by using all the ratios below.

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2018 2019 2020 Current Ratio 1.21 1.12 1.00 Quick Ratio 0.9 0.8 0.8 Inventory Turnover Ratio 4 3.5 3 3 37 39 6 64 Creditor Turnover(days) Debtor Turnover(days) 63 64 8 86

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