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Issue:

Business

 

Written by:

Corey A

 

Date added:

June 4, 2017

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 666

 

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5666 times

 

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Cartwright Lumber Company’s current ratio and quick ratio’s stand by this fact. The Current Ratio is approximately 1,40 (932/690) and the Quick Ratio is around 0,50 ((932-556)/690). The Current Ratio seems to be on an adequate level but the Quick Ratio can be considered to be alarming. This is because the company has such a large inventory...
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This is because the company has such a large inventory. The Quick Ratio is considered to give a more realistic picture of the firm’s short-term financing ability because inventory can’t necessary be realized to liquid funds. The poor status of these ratios leads to the situation where the company can’t use the offered purchase discounts...
displayed 300 characters

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