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Calculate the current ratio and quick ratio for Global Imports Inc. with the following financial information: Current assets: $1,200,000 Current liabilities: $600,000 Inventory: $400,000 Prepaid
- Calculate the current ratio and quick ratio for "Global Imports Inc." with the following financial information:
- Current assets: $1,200,000
- Current liabilities: $600,000
- Inventory: $400,000
- Prepaid expenses: $50,000
Evaluate the liquidity position of Global Imports Inc. based on these ratios and suggest potential strategies for improvement.
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th edition
130565353X, 978-1305887510, 1305887514, 978-1305653535
