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the current ratio (CR) measures the corporations ability to cover its short-term (ST) maturing liabilities with current assets (CA). Is it better to have a
the current ratio (CR) measures the corporations ability to cover its short-term (ST) maturing liabilities with current assets (CA).
- Is it better to have a higher CR to the industry average or is it better to have a lower CR? Explain your answer
- When inventories increase, what effect will this have on the CR, potential profitability, and risk to the firm as a result? Explain.
- When accounts payable (AP) drop, what effect will this have on the CR, potential profitability, and risk to the firm as a result? Explain.
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