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Current Ratio, Quick Ratio, and Times - Interest - Earned Ratio The following data is from the current accounting records of Florence Company: allowance method
Current Ratio, Quick Ratio, and TimesInterestEarned Ratio
The following data is from the current accounting records of Florence Company:
allowance method to account for bad debts.
a Calculate the current ratio under the following scenarios: Round answers to two decimal places.
Which action, if any, should Florence Company take to maintain a minimum current ratio?
b Will either the quick ratio or the timesinterestearned ratios be affected by at least one of these
ideas?
Quick ratio
Timesinterestearned ratio
Please answer all parts of the question.
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