Chapter 7 Working Capital Management

This is well below the ideal of 2:1 and indicates a cash flow problem. The Acid Test Ratio has disimproved from 0.65:1 in 1997 to 0.56:1 in 1998. This is well below the ideal of 1:1 and shows that this firm cannot meet its short­ term debts as they fall due. ................
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