Answers to Text Discussion Questions

Cash Ratio 0.0056 0.113 Current Ratio 2.06 2.51 Quick Ratio 0.61 0.68 NWC to TA 0.33 0.43 Interval Ratio 426.99 236.07 Absolute Liquidity = NWC 950,450 535,000 The above ratios indicate that although the absolute liquidity (Net working Capital) of the firm has increased in 2004, the relative liquidity of the firm has decreased. ................
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