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How the current ratio liquidity and use of working capital

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Reference no: EM132614566

Problem 1: Explain how the following Liquidity and the use of working capital ratios would help in understanding the financial position and results of a company:

1) Current ratio

2) Acid test

3) Inventory (stock) holding period

4) Customers (debtors) collection

5) Suppliers' payment period

6) Working capital cycle

Reference no: EM132614566

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