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Guinther & Sons,Inc

Question 32

Multiple Choice

Guinther & Sons,Inc. Guinther & Sons,Inc.a retailer of men's clothing,earned a net profit of $77,000 for 2014.The balance sheet for Guinther & Sons includes the following items:
Guinther & Sons,Inc. Guinther & Sons,Inc.a retailer of men's clothing,earned a net profit of $77,000 for 2014.The balance sheet for Guinther & Sons includes the following items:   Read the information for Guinther & Sons,Inc.The average current ratio for stores such as Guinther & Sons is 2.4 to 1.What does this comparison tell you about its liquidity? A) It is more liquid than its competitors B) It has more long-term assets than its competitors C) Since a rule of thumb for current ratios is 2 to 1,neither Nadia & Sisters nor its competitors is liquid. D) Nadia & Sisters is more profitable than its competitors. Read the information for Guinther & Sons,Inc.The average current ratio for stores such as Guinther & Sons is 2.4 to 1.What does this comparison tell you about its liquidity?


A) It is more liquid than its competitors
B) It has more long-term assets than its competitors
C) Since a rule of thumb for current ratios is 2 to 1,neither Nadia & Sisters nor its competitors is liquid.
D) Nadia & Sisters is more profitable than its competitors.

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