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Calculate the working capital ratio for a company with current assets of $80,000 and current liabilities of $40,000. Interpret the ratio and discuss its significance
Calculate the working capital ratio for a company with current assets of $80,000 and current liabilities of $40,000. 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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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
