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Justin Hammer, CEO of Hammer Industries, is concemed whether his company may have a liquidity problem. He noted that the Quick Ratio for the past

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Justin Hammer, CEO of Hammer Industries, is concemed whether his company may have a liquidity problem. He noted that the Quick Ratio for the past three years, starting in calendaryears 2017 and ending in 2019 was calculated as 2.6%,1.9%, and 1.7%, respectively. The current ratio wis calculated for the same years as 2.0%, 1.5%, and 1.2\%, respectively. Mr. Hammer is unsure what this means and turns to you for advicel Do not let him downici. a. The quick ratio and the current ratio measures different components (thus should not be compared). b. The quick ratio should always be larger than the current ratio. c. Mr. Hammer should order prices to be raised and slow inventory purchases before the ratios become even worse. d. Mr. Hammer should ask for more information before making any decisions and taking further action

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