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Read the scenario and answer the questions that follow. Barry McGuire wants to purchase a dry-cleaning establishment and has all four of its financial statements.

Read the scenario and answer the questions that follow. Barry McGuire wants to purchase a dry-cleaning establishment and has all four of its financial statements. He needs to calculate some financial ratios to help answer some financial questions about the company. Give a specific ratio that would help him answer each of the following two financial questions: Can the company pay its short-term bills? Is the company profitable?

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