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Question 5: Given the following data, analyze the company's working capital management. Cash: $20,000 Accounts Receivable: $50,000 Inventory: $30,000 Accounts Payable: $40,000 Short-term Debt: $20,000
Question 5:
Given the following data, analyze the company's working capital management.
- Cash: $20,000
- Accounts Receivable: $50,000
- Inventory: $30,000
- Accounts Payable: $40,000
- Short-term Debt: $20,000
Requirements:
- Calculate the Working Capital.
- Calculate the Current Ratio.
- Calculate the Quick Ratio.
- Provide insights on the company's liquidity position.
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Financial and Managerial Accounting
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
9th edition
1439037809, 978-1439037805
