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Q. Show the Quick ratio or acid test?
Quick ratio = Current assets less inventories/Current liabilities (times)
This ratio measures immediate solvency of a business as it removes inventories out of the equation, which is the item least representing cash, as it needs to be sold. Normal is around 1: 1 however this varies within different industries.
To buy a retirement home, you will need $525,000 in 18 years. If funds can be invested at an effective return of 6 percent a year, how much must you invest today to have the desire
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