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Dorian Company Has a Current Ratio of 0

Question 8

Multiple Choice

Dorian Company has a current ratio of 0.27 and return on equity of 0.05.Which of the following statements is the best regarding Dorian's profitability and solvency?


A) Dorian is very profitable, but not very solvent.
B) Dorian is very profitable and very solvent.
C) Dorian is not very profitable, but very solvent.
D) Dorian is not very profitable and not very solvent.

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