Access Motley Fool’s discussion of the current ratio at Fool.com/investing/beginning/how-tovalue- stocks-how-to-read-a-balance-sheet-cu.aspx. (If the page has changed, search that site for the article “How to Read a Balance Sheet: Current and Quick Ratios.”) 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?
Access Motley Fool’s discussion of the current ratio at Fool.com/investing/beginning/how-tovalue- stocks-how-to-read-a-balance-sheet-cu.aspx. (If the page has changed, search that site for the article “How to Read a Balance Sheet: Current and Quick Ratios.”) 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Access Motley Fool’s discussion of the
stocks-how-to-read-a-balance-sheet-cu.aspx. (If the page has changed, search that site for the
article “How to Read a
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?
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