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Current assets of company ABC plc are 285m and current liabilities are 165m. Inventories of the same company are 72m. Required: a) Determine the working

Current assets of company ABC plc are 285m and current liabilities are 165m. Inventories of the same company are 72m.

Required: a) Determine the working capital of this company. b) To assess the liquidity find current ratio and quick ratio (acid test). c) Determine the maximum inventory size that makes the acid test at least 0.6.

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