Assuming Target’s industry had an average current ratio of 1.0
and an average debt to equity...
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Accounting
Assuming Target’s industry had an average current ratio of 1.0and an average debt to equity ratio of 2.5, comment on Target’sliquidity and long-term solvency.
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Current ratio is a liquidity ratio that measures a companys ability to pay short term obligations that are due within a year It is calculated by comparing companys current assets to its current liabilities Current assets comprises cash receivables inventory and other assets that are expected to be turned into cash within 1 year Current liabilities includes accounts payables tax payables
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