What do some companies do to compensate

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Miller Corporation has a current ratio of 1.1. Ron has always been told that a corporation"s current ratio should exceed 2.0. Miller argues that its ratio is low because it has a minimal amount of inventory on hand so as to reduce operating costs. Miller also points out that it has significant available lines of credit. Is Ron still correct? What do some companies do to compensate for having fewer liquid assets?

Reference no: EM13532976

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