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Liquidity & Leverage problem (in the accounting ratios section) ------------------------------------------------------------------------------ I am trying to do part (v), but I'm not sure I understand how to do it. I don't really understand the answer given either. The problem(s): http://www.tiikoni.com/tis/view/?id=39c2f43 The answer(s): http://www.tiikoni.com/tis/view/?id=a8ee7d4 Any input would be GREATLY appreciated!
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Well for part V, they are asking u to comment on the business ability to meet the obligations, based on the answers u have got for quick ratio, debts to equity ratio etc...
Sorry for being very pedantic, but could you please tell me which of the ratios is/are used (for part v), and how?
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