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Acme Company is applying for a loan in which the bank requires a quick ratio of at least 1. Acme's quick ratio is 0.8. Explain
Acme Company is applying for a loan in which the bank requires a quick ratio of at least 1. Acme's quick ratio is 0.8. Explain why the bank is using this ratio over some other measure. Which of the following actions suggested by an intern to you the CFO, if any, would actually increase Acme's quick ratio? (1) purchasing inventory through the issuance of a long-term note, (2) Implementing stronger procedures to collect accounts receivable at a faster rate, (3) paying an existing account payable, or (4) selling obsolete inventory at a loss. Acme Company is applying for a loan in which the bank requires a quick ratio of at least 1 . Acme's quick ratio is 0.8 . Explain why the bank is using this ratio over some other measure. Which of the following actions suggested by an intern to you the CFO, If any, would actually increase Acme's quick ratio? (1) purchasing inventory through the issuance of a long-term note, (2) Implementing stronger procedures to collect accounts receivable at a faster rate, (3) paying an existing account payable, or (4) selling obsolete inventory at a loss
Acme Company is applying for a loan in which the bank requires a quick ratio of at least 1. Acme's quick ratio is 0.8. Explain why the bank is using this ratio over some other measure. Which of the following actions suggested by an intern to you the CFO, if any, would actually increase Acme's quick ratio? (1) purchasing inventory through the issuance of a long-term note, (2) Implementing stronger procedures to collect accounts receivable at a faster rate, (3) paying an existing account payable, or (4) selling obsolete inventory at a loss.
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