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  3. Study Set
    Fundamental Principles of Finance
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    Exam 9: Analyzing and Forecasting Financial Statements
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    A Firm Has a Current Ratio of 2
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A Firm Has a Current Ratio of 2

Question 5

Question 5

Essay

A firm has a current ratio of 2.0 and a quick ratio of 1.6. If the firm doubles their inventory and intends to pay for it within 30 days of receipt, what will be their new current ratio?

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