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Calculate the quick ratio for Company DEF, given its current assets of $600,000, excluding inventories, and current liabilities of $200,000. Describe the quick ratio as
Calculate the quick ratio for Company DEF, given its current assets of $600,000, excluding inventories, and current liabilities of $200,000. Describe the quick ratio as a liquidity ratio used to measure a company's ability to meet short-term obligations using its most liquid assets. Discuss the significance of a high or low quick ratio in assessing liquidity, financial health, and its implications for short-term solvency and operational stability.
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