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Look at the following current asset and liability data for Beaches Resorts (BR) and choose the correct conclusion: Assets Amount (Mil) Liabilities Amount (Mil) Cash
| Look at the following current asset and liability data for Beaches Resorts (BR) and choose the correct conclusion: |
| Assets | Amount (Mil) | Liabilities | Amount (Mil) | ||||||
| Cash | $ | 90 | Payables | $ | 495 | ||||
| Securities | $ | 210 | Bank notes | $ | 350 | ||||
| Receivables | $ | 440 | Other | $ | 167 | ||||
| Inventory | $ | 567 | |||||||
| Industry average current ratio 1.33 | |||||||||
| Industry average quick ratio 0.79 |
BR is less liquid than the industry average according to both the current and quick ratio.BR is less liquid than the industry average according to the current ratio but more liquid according to the quick ratio.BR is more liquid than the industry average according to both the current and quick ratio.BR is more liquid than the industry average according to the current ratio but less liquid according to the quick ratio.
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
