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The firms current ratio is 2 and the current liabilities are 2. This means that Current assets are 4 and the firm is liquid Current

  1. The firms current ratio is 2 and the current liabilities are 2. This means that
    1. Current assets are 4 and the firm is liquid
    2. Current assets are 4 and the firm is illiquid
    3. The current ratio is not sufficient to cover current liabilities
    4. The current ratio shows ample liquidity with assets being 6

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