Firm has more current assets than does current liabilities

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A firm has more current assets than it does current liabilities. However, 75% of the firm’s current assets are held in inventory. With business slowing, it appears that approximately 50% of this inventory will remain unsold and on the balance sheet for more than a year. The major concern for this firm is what?

a. Solvency b. Cash conversion Efficiency c. Net Liquid Balance d. Liquidity

Reference no: EM131452607

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