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University
| Teaching Since: | Apr 2017 |
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| Questions Answered: | 9562 |
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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Suppose you are comparing two firms that are in the same line of business. Firm C has an operating cycle of 40 days, and D has an operating cycle of 60 days. Firm C has a current ratio of 3, and D has a current ratio of 2.5. Comment on the liquidity of the two firms. Which firm has more risk of not satisfying its near-term obligations? Why?
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