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Ratios: If a company's Current Ratio is HUGE, like 8 . 0 x: Question 2 2 options: That means they can satisfy the current liabilities
Ratios: If a company's Current Ratio is HUGE, like x:
Question options:
That means they can satisfy the current liabilities without a problem. No worries
You might want to delete prepaid expenses from the calculation to see if the ratio shrinks to a level more common to many companies.
While provides seemingly sufficient comfort, you might want to examine efficiencies to see if inventory daysonhand have increased unreasonably
All of the above are reasonable
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