Page 1 of 1
2. THE QUICK RATIO [3 POINTS] 2.1. Consider the Current Ratio from a shareholder's perspective. A high current ratio cou
Posted: Sun Apr 17, 2022 6:26 pm
by answerhappygod
- 2 The Quick Ratio 3 Points 2 1 Consider The Current Ratio From A Shareholder S Perspective A High Current Ratio Cou 1 (92.61 KiB) Viewed 21 times
2. THE QUICK RATIO [3 POINTS] 2.1. Consider the Current Ratio from a shareholder's perspective. A high current ratio could mean that the
company has large inventory holdings that might become obsolete before being sold. A low ratio could concern the creditors due to the firm's liquidity issues, but a low ratio could be due to its mastery of just-in-time inventory management. In both situations, the firm's ratio could be far from the industry average. Comment on this conundrum using LM and Raytheon's CR & QR calculated from their 2019 annual reports in your homework. 2.2. Mustang Corporation has current liabilities of $800 million, and its current ratio is 2.8. 2.2.1. What is its level of current assets? 1 2.2.2. If this firm's quick ratio is 2.2, how much inventory does it have?