Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 37

Access Motley Fool 's discussion of the current ratio at Fool.com/School/Valuation/ CurrentAndQuickRatio.htm. (If the page changed, search that site for the current ratio.)
Required
1. What level for the current ratio is generally regarded as sufficient to meet near-term operating needs
2. Once you have calculated the current ratio for a company, what should you compare it against
3. What are the implications for a company that has a current ratio that is too high