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Calculate the current ratio and quick ratio for a retail store with the following financial information: Current assets are $800,000. Current liabilities amount to $400,000.
- Calculate the current ratio and quick ratio for a retail store with the following financial information:
- Current assets are $800,000.
- Current liabilities amount to $400,000.
- Inventory is $250,000.
- Prepaid expenses stand at $50,000.
Analyze the liquidity position of the retail store based on these ratios and discuss their significance.
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