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PLEASE ASSIST, THE ANSWER IS 1.22 . HOW DID THEY GET IT? 3) Vance Motors has current assets of R1.2 million. The company's current ratio
PLEASE ASSIST, THE ANSWER IS 1.22. HOW DID THEY GET IT?
3) Vance Motors has current assets of R1.2 million. The company's current ratio is 1.2, its quick ratio is 0.7, and its inventory turnover ratio is 4. The company would like to increase its inventory turnover ratio to the industry average, which is 5, without reducing its sales. Any reductions in inventory will be used to reduce the company's current liabilities. What will be the company's current ratio, assuming that it is successful in improving its inventory turnover ratio to 5Step by Step Solution
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