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Firm PM has total assets of $600,000, long term debt of $350,000, total equity of $200,000, fixed assets of $500,000, and sales of $700,000. The

Firm PM has total assets of $600,000, long term debt of $350,000, total equity of $200,000,

fixed assets of $500,000, and sales of $700,000. The profit margin is 5 percent.

What is the current ratio?

Do you think the firms short-term solvency good or bad? Why?

What is the debt-equity ratio?

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