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The most recent balance sheet of Raconteurs Inc in millions is as follows Current assets Cash and marketable securities

The most recent balance sheet of Raconteurs, Inc. (in millions) is as follows: Current assets   Cash and marketable securities .......... $ 10 Accounts receivable ............. 40 Inventory ................. 60 Total ................... $110 Current liabilities   Accrued wages and taxes ........... $ 5 Accounts payable .............. 35 Notes payable ................ 30 Total ................... $ 70 a. Calculate Raconteurs’ current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratio are 1.50 and 1.20, respectively. What can you say about the liquidity of Raconteur’s operations based on these two ratios?

 

May 23 2020 View more View Less

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