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Calculate the working capital ratio for a company with current assets of $60,000 and current liabilities of $30,000. Interpret the ratio and discuss its significance
Calculate the working capital ratio for a company with current assets of $60,000 and current liabilities of $30,000. Interpret the ratio and discuss its significance in evaluating the company's liquidity position. Additionally, explain how changes in working capital affect financial stability.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
25th edition
978-1285069609, 1285069609, 978-1133607601
