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Should be concerned about the short term liquidity -explain

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Assume that you have several thousand dollars to invest in the stock market. Given the people will always have to eat. You have decided to explore the possibility of investing in Wendy's and McDonald's your analysis of each company's financial statements reveals that both have negative working capital and both have current and quick ratios of less than 1 to 1.

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Question 1: Based on your findings, should you be concerned about the short term liquidity of these two companies? Explain

Reference no: EM132569321

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