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Future Technology has $100,000 of cash and $400,000 of cash equivalents on its balance sheet at the end 2022. 2023 its current liabilities are $1,000,000.
Future Technology has $100,000 of cash and $400,000 of cash equivalents on its balance sheet at the end 2022. 2023 its current liabilities are $1,000,000. Its cash ratio is: ($100,000 Cash + $400,000 Cash equivalents) $1,000,000 Current liabilities = 0.5:1 Cash ratio The ratio changed (either increased or decreased) from the year 2022 to the year 2023. Find the change in the ratio and write what causes the ratio to change
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