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Evaluating Firm Liquidity The following financial information is taken from the balance sheets of the Peter Company and the Paul Company: Current assets Peter Paul
Evaluating Firm Liquidity The following financial information is taken from the balance sheets of the Peter Company and the Paul Company: Current assets Peter Paul $200,000 $50,000 Current liabilities 40,000 20,000 Calculate the current ratio for each company. Round answers to two decimal places, when appropriate. Peter Company 0 Paul Company o Which firm has a higher level of liquidity? Please answer all parts of the
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