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The balance sheet for Promotion Pty Ltd reveals cash on hand of $4000, accounts receivable of $24 000, inventory measured at $25 000 and plant
The balance sheet for Promotion Pty Ltd reveals cash on hand of $4000, accounts receivable of $24 000, inventory measured at $25 000 and plant and equipment measured at $58 000. The liabilities of the entity are: accounts payable $14 000, a bank overdraft of $16 000 and a loan of $90 000. Relate this information to the liquidity of the entity.
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