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Thursday, July 15, 2010 7:20:49 PM
Current liabilities are those that have to be paid NOW... Not later.
Current assets are used to pay current liabilities... They don't have enough current assets to meet their current bills that are required to be paid NOW. Where is the money going to come from to pay the current bills that are due????
This is the same as your home finance situation... More bills on the table than money in the bank... What are they going to do?
Hint: Issue more stock to raise money.
Dick Milde
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