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Discuss liquidity and how it relates to liabilities

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Reference no: EM132484173

Point 1: Jacqueline Murray is a loan analyst and is examining the current liabilities of Maddox Company who is seeking to obtain a loan. Jacqueline observes that unearned revenues in the current year declined as opposed to the prior year.

Requirement:

Question 1: Is this decline a positive indicator about Maddox Company's liquidity? Why or why not?

Question 2: Be sure to discuss liquidity and how it relates to liabilities.

Reference no: EM132484173

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