Current Ratio What effect would the following actions have on a firms current ratio assume that net
Question:
Current Ratio What effect would the following actions have on a firm’s current ratio assume that net working capital is positive.
a. Inventory is purchased.
b. A supplier is paid.
c. A short-term bank loan is repaid.
d. A long-term debt is paid off early.
e. A customer pays off a credit account.
f. Inventory is sold at cost.
g. Inventory is sold for a profit.
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a If inventory is purchased with cash then there is no change in the current ratio If inventory is p...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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