What do some companies do to compensate

Reference no: EM131830697

Question: Anglo Corporation has a current ratio of 1.1. Jon has always been told that a corporation's current ratio should exceed 2.0. The company maintains that its ratio is low because it has a minimal amount of inventory on hand so as to reduce operating costs. Anglo also has signifi cant available lines of credit. Is Jon still correct? What do some companies do to compensate for having fewer liquid assets?

Reference no: EM131830697

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