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    Current Ratios Evaluated

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    The purpose for the current ratio is to evaluate the firm's ability to:

    a. generate sales with a given level of current assets
    b. utilize current assets profitably
    c. pay its bills in the short run
    d. effectively use borrowed funds

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    Solution Preview

    The current ratio is another test of a company's financial strength. It calculates how many ...

    Solution Summary

    The expert evaluates the current ratios for a firm's ability.