Gil Corporation has current assets of $90,000 and current liabilities of $180,000.
Compute the effect of each of the following independent transactions on Gil’s current ratio:
1. Refinancing a $30,000 long-term mortgage with a short-term note.
2. Purchasing $50,000 of merchandise inventory with short-term accounts payable.
3. Paying $20,000 of short-term accounts payable.
4. Collecting $10,000 of short-term accounts receivable.