Question
Owen Monie is attempting to categorize several items from his company's financial statements so he can determine his working capital. Owen notices the following categories
Owen Monie is attempting to categorize several items from his company's financial statements so he can determine his working capital. Owen notices the following categories of accounts and amounts: cash $8,800 accounts payable $17,250 accounts receivable $22,100 sales tax due city $3,125 sales tax due the state department of revenue $1,500 inventory $26,500 wages payable $7,100 taxes payable (federal) $5,000 money market fund $18,750 which statement best describes Owen's liquidity ratios? check all that apply this company is sufficiently liquid, his current ratio is above the general rule of 2.0 or higher. His company is not sufficiently liquid. Owen will have a difficult time meeting his current obligations for every dollar of short-term creditors claims, he has more than $2 to pay for those current obligations Owen quick ratio is below the general rule of one or higher indicating liquidity problems
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