Dungy Training Company has a current ratio of 0.70 to 1, based on current assets of $3.43
Question:
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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Current ratio before purchase of inventory 3430000 4900000 070 ...View the full answer
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Related Book For 
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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