Question
Given the following Working Capital information for London Products, LLC, calculate their Current Ratio. (Please show calculations) Cash & Cash Equivalents $125,000 Accounts Receivables 200,000
Given the following Working Capital information for London Products, LLC, calculate their Current Ratio. (Please show calculations) Cash & Cash Equivalents $125,000 Accounts Receivables 200,000 Inventories 100,000 Prepaid Expenses 50,000 Accounts Payables 200,000 Short-term Credit Line 150,000 Wages & Salaries Payable 250,000 Current Ratio = ____________________________________ Based on the current ratio, if all liability (credit) holders required immediate payment from London, would London be able to pay the creditors in full? Why or why not?
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