Tillie Corporation has a current ratio (Current Assets/ Current Liabilities) of 2:1. How will the payment...
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Tillie Corporation has a current ratio (Current Assets/ Current Liabilities) of 2:1. How will the payment of a cash dividend declared two weeks ago affect the following? O a. O b. Current Ratio Decrease OC O d. Current Ratio Increase O e. Current Ratio Increase Current Ratio No Effect Current Ratio No Effect Working Capital No effect Working Capital Decrease Working Capital Increase Working Capital Decrease Working Capital No Effect Tillie Corporation has a current ratio (Current Assets/ Current Liabilities) of 2:1. How will the payment of a cash dividend declared two weeks ago affect the following? O a. O b. Current Ratio Decrease OC O d. Current Ratio Increase O e. Current Ratio Increase Current Ratio No Effect Current Ratio No Effect Working Capital No effect Working Capital Decrease Working Capital Increase Working Capital Decrease Working Capital No Effect
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The answer is b Current ratio decrease and working capital decrease Explanation The journal entry fo... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
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