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Question 5: Liquidity Ratios for GHI Inc. Balance Sheet Data (in millions) Current Assets: $150 Inventory: $40 Current Liabilities: $80 Cash: $30 Accounts Receivable: $50
Question 5:
Liquidity Ratios for GHI Inc.
Balance Sheet Data (in millions)
- Current Assets: $150
- Inventory: $40
- Current Liabilities: $80
- Cash: $30
- Accounts Receivable: $50
Requirements:
- Calculate the Current Ratio.
- Calculate the Quick Ratio.
- Determine the Working Capital.
- Assess the company’s short-term financial health.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
