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| Teaching Since: | May 2017 |
| Last Sign in: | 409 Weeks Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
In the last quarter, the financial-analysis report for XYZ Company revealed that the current, quick, and equity ratios were 1.9, 0.8, and 0.37, respectively. In order to improve the firm's financial health based on these financial ratios, the following strategies are considered by XYZ for the current quarter:
(i) Reduce inventory
(ii) Pay back short-term loans
(iii) Increase retained earnings
(a) Which strategy (or strategies) is effective for improving each of the three financial ratios?
(b) If only one strategy is considered by XYZ, which one seems to be most effective? Assume no other information is available for analysis.
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