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Extensive Enterprise Inc.'s Chief Financial Officer (CFO) has decided to take a closer look at the firm's short-term assets and liabilities. Extensive's balance sheet follows:
Extensive Enterprise Inc.'s Chief Financial Officer (CFO) has decided to take a closer look at the firm's short-term assets and liabilities. Extensive's balance sheet follows: The value of Extensive's net working capital is . And, Extensive's current ratio is Assume that Extensive Enterprise Inc. decides to acquire an additional $1,750,000 in inventories and pay using its accounts payable. Given the condition of the company noted in the balance sheet, this activity should be expected to cause Extensive's current ratio to
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