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XYZ Inc, a manufacturing firm, boasts a current ratio of 2, indicating its strong liquidity position. However, the company's current liabilities amount to $50,000, and

  • XYZ Inc, a manufacturing firm, boasts a current ratio of 2, indicating its strong liquidity position. However, the company's current liabilities amount to $50,000, and its inventory is valued at $100,000. Based on this data, meticulously calculate the total current assets of XYZ Inc and expound on the significance of a robust current ratio for operational efficiency and financial stability in the business context.
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