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Robert is a manager of a small-scale firm. He needs to decide whether the firm has sufficient resources to meet its short-term obligations. Calculate the
Robert is a manager of a small-scale firm. He needs to decide whether the firm has sufficient resources to meet its short-term obligations. Calculate the ratio that Robert needs to calculate from the information given below.
Cash and cash equivalents | $1,057,600 |
Accounts receivables | 1,556,500 |
Short-term investments | 770,300 |
Other current assets | 420,500 |
Accounts payable | 995,700 |
Long-term debt | 528,000 |
Short-term debt | 176,000 |
Other current liabilities | 2,495,700 |
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Debt ratio of 1.26
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Current ratio of 1.04
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Current ratio of 0.92
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Debt ratio of 0.91
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