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Assess the financial risk for ABC Corporation based on the following data: Category Amount ($) Current Assets $100,000 Current Liabilities $80,000 Total Debt $150,000 Equity
- Assess the financial risk for ABC Corporation based on the following data:
| Category | Amount ($) |
|---|---|
| Current Assets | $100,000 |
| Current Liabilities | $80,000 |
| Total Debt | $150,000 |
| Equity | $200,000 |
Requirements:
- Calculate the current ratio and debt-to-equity ratio.
- Analyze the financial risk based on the ratios.
- Present the analysis in a detailed table format.
- Discuss potential implications of financial risk for the company.
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College Accounting A Career Approach
Authors: Cathy J. Scott
13th edition
1337280569, 978-1337607773, 1337607770, 978-1337516525, 133751652X, 978-1337668026, 978-1337280563
