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Ratios: Working Capital and the Current Ratio
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Problem 10
Ratios: Working Capital and the Current Ratio
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14. Financial Statement Analysis / Ratios: Working Capital and the Current Ratio / Problem 5
Problem 5
Why might a company with positive working capital still face financial challenges?
A
It has more liabilities than assets.
B
It is unable to pay dividends.
C
It has a low current ratio.
D
It may have inefficiently managed its assets, leading to missed investment opportunities.
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