Doran Corp has a current ratio of 6 . Under which of the following scenarios might this indicate a problem?
a. inventories are increasing due to the introduction of a new product
b. the company is holding cash in expectation of making a large investment in equipment
c. receivables are increasing due to increasing sales
d. inventories are increasing and the industry in which Doran Corp. operates is experiencing a recession
D
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Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)
Use this information to answer the following question. The general ledger account for Accounts Receivable shows a debit balance of $50,000 . Allowance for Uncollectible Accounts has a credit balance of $1,000 . Net sales for the year were $500,000 . In the past, 2 percent of sales have proved uncollectible, and an aging of accounts receivable accounts results in an estimate of $13,500 of
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