?A company has the following details extracted from its statement of financial position:
??????????????????????????????????? $'000
Inventories????????????? ??? 1,900
Receivables??????????????? 1,000
Bank overdraft??????????? 100
Payables?????????????????????1,000
The industry the company operates in has a current ratio norm of 1.8. Companies who manage liquidity well in this industry
have a current ratio lower than the norm.
Which of the following statements accurately describes the company’s liquidity position?