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The controlier asks the accounting manager to recommend measures to assess liquidity if a strike were to occur. Although some of the nonunion employees could
The controlier asks the accounting manager to recommend measures to assess liquidity if a strike were to occur. Although some of the nonunion employees could probably produce test instruments during a strike, the controller would rather be conservative and assume no shipments during this time frame. Since the customers may go to other sources to obtain the products they need during a strike, cash receipts foe current outstanding amounts owed by customers may not be paid on a timely basis. A. Define liquidity and explain its importance to Sentech. B. Identify three measures that could be used to assess liquidity and explain haw to calculate these measures. C. Determine which liquidity measure identified above would best fit the controller's requirements, and explain why. include in your discussion the reasons why the other measures would not be as appropriate. D. Identify and describe three different types of short-term credit that Sentech could use to finance its operations during a strike
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