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Martin Company Has a Cash Ratio of 0

Question 90

Multiple Choice

Martin Company has a cash ratio of 0.3.This implies that the company ________.


A) has an unnecessarily large amount of cash supply
B) is not sending a strong message to investors and creditors that it has the ability to repay its short-term debt
C) is not in a position to meet its long-term obligations
D) has no liquidity issues

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