20X11 - them into cash. It may also indicate the company...

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20X1 20X0 Cash $6,950 $6,330 Accounts receivable, net 18,567 19,230 Quick Assets $25,517 $25,560 Current Liabilities $27,945 $30,347 aAcid-test ratio .9 : 1 .8 : 1 The traditional rule of thumb for this ratio has been 1:1. Anything below this level  requires further analysis of receivables to understand how often the company turns 
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Unformatted text preview: them into cash. It may also indicate the company needs to establish a line of credit with a financial institution to ensure the company has access to cash when it needs to pay its obligations....
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