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A company is applying for a line of credit at a bank

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1. A company is applying for a line of credit at a bank. The company's current ratio is 2 to 1. Although the bank felt that the company should be able to meet its short-term obligations, it stated that the current ratio was a concern. Discuss why a current ratio of 2 to 1 might indicate problems for the company.

Reference no: EM13956015

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