The current ratio for Joshua Wines is 2.2 and the acid test ratio for the business is 0.7. These ratios suggest that the company

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The current ratio of 2.2 indicates that Joshua Wines has more than twice its current liabilities covered by its current assets, suggesting good short-term financial health. However, the acid test ratio (or quick ratio) of 0.7, which excludes inventory from current assets, is below 1. This discrepancy suggests that a significant portion of the company's current assets is tied up in inventory, indicating that Joshua Wines is carrying too much inventory relative to its more liquid current assets.

The Current Ratio for Joshua Wines Is 2