Give me the idea solution
MGT201 GDB Question:
Suppose, Mr. Hussain is a leather supplier to ABC Company, a manufacture of leather shoes; and XYZ Company, a manufacturer of leather wallets for men. Both companies purchase leather on credit from Mr. Hussain and agree to pay within 90 days. Upon completion of agreed time period, ABC Company pays off its liability but XYZ Company remains unable to make the due payment.
Current Ratio of both companies are as follows:
Required:
Keeping in view the above given information, being a financial analyst, you need to analyze that:
(Give logical justification and reasoning of your answers).
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