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Shown below are liquidity ratios for several companies. Industry Average 1.2:1 Company #1 Company #2 Company #3 Company #4 Current ratio 1.5:1 1.6:1 1.3:1 2.9:1 Average collection period 57 days 39 days 52 days 45 days Days in inventory 20 days 50 days 65 days 60 days For each of the following questions, choose the appropriate company by referring to the ratios shown above. 29 days 71 days

Shown below are liquidity ratios for several companies. Industry Average 1.2:1 Company #1 Company #2 Company #3 Company #4 Current ratio 1.5:1 1.6:1 1.3:1 2.9:1 Average collection period 57 days 39 days 52 days 45 days Days in inventory 20 days 50 days 65 days 60 days For each of the following questions, choose the appropriate company by referring to the ratios shown above. 29 days 71 days

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 2 Shown below are liquidity ratios for several companies. Company #1 Company #2 1.5:1 1.6:1 29 days 57 days 71 days 20 days Company #3 1.3:1 39 days 50 days Company #4 2.9:1 Industry Average 1.2:1 Current ratio Average collection period 52 days 65 days Days in inventory For each of the following questions, choose the appropriate company by referring to the ratios shown above. 45 days 60 days ▼(a) Which company sold common shares recently and has not yet invested all of the cash raised from the share issue?
Transcribed Image Text:Question 2 Shown below are liquidity ratios for several companies. Company #1 Company #2 1.5:1 1.6:1 29 days 57 days 71 days 20 days Company #3 1.3:1 39 days 50 days Company #4 2.9:1 Industry Average 1.2:1 Current ratio Average collection period 52 days 65 days Days in inventory For each of the following questions, choose the appropriate company by referring to the ratios shown above. 45 days 60 days ▼(a) Which company sold common shares recently and has not yet invested all of the cash raised from the share issue?
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