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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 Summary

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

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

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