d. If amesway sells $1.2 million in new stock and places the proceeds in marketable securities, what happens to its current and quick ratios? New current ratio: New quick ratio:
d. If amesway sells $1.2 million in new stock and places the proceeds in marketable securities, what happens to its current and quick ratios? New current ratio: New quick ratio:
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 8P
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Step 1
Current Ratio & Quick Ratio are calculated to know short-term solvency positions of the company. It shows efficiency of company to meet its short-term liabilities. Ideal Current-Ratio is considered 2:1 and Quick-Ratio is 1:1.
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