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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1055 |
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Current ratio 1 is based upon data on the balance sheet. As to current ratio 2, it is also based upon data on the balance sheet, but the amount of inventory determined under the retail method without regard to last-in, first-out (LIFO) principals. In this case, the current ratio 2 is higher than current ratio 1...
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As to current ratio 2, it is also based upon data on the balance sheet, but the amount of inventory determined under the retail method without regard to last-in, first-out (LIFO) principals. In this case, the current ratio 2 is higher than current ratio 1. As shown graph above, Current ratios and Quick, or Acid Test ratio have been deteriorating from 1980 to 1983 respectively...
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