Question: Current Ratio What effect would the following actions have on a firms current ratio assume that net working capital is positive. a. Inventory is purchased.

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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