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Two companies have an identical amount of current assets and current liabilities. Donald Inc. has 40% of its current assets invested in inventory, whereas

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Two companies have an identical amount of current assets and current liabilities. Donald Inc. has 40% of its current assets invested in inventory, whereas Mickey Corp. has 30% of its current assets invested in inventory. Which of the following statements is true? ODonald will have the higher quick ratio. Donald will have the higher current ratio. The companies are equally liquid because their current ratios are the same. ODonald is less liquid than Mickey.

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