YZA Corporation has a Current Ratio of 3 and a Quick Ratio of 1. What...
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Finance
YZA Corporation has a Current Ratio of 3 and a Quick Ratio of 1. What can be inferred about the firm from these ratios?
Select one:
a. The firm has enough easily liquidated assets to cover its financial obligations several times over.
b. The firm carries too much inventory and will have potential financial difficulties if faced with conditions that reduce the firm's cash holdings.
c. The firm has an opportunity to make a large amount of money given the inventory that it can interject into the market.
d. All of the above can be inferred.
e. None of the above answers can be inferred.
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