Question: Dungy Training Company has a current ratio of 0 70 to
Dungy Training Company has a current ratio of 0.70 to 1, based on current assets of $3.43 million and current liabilities of $4.90 million. How, if at all, will a $900,000 cash purchase of inventory affect the current ratio? How, if at all, will a $900,000 purchase of inventory on account affect the current ratio?
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