a. Modern Medical Devices has a current ratio of 0.5. Which of the following actions would improve

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a. Modern Medical Devices has a current ratio of 0.5. Which of the following actions would improve (i.e., increase) this ratio?

• Use cash to pay off current liabilities.

• Collect some of the current accounts receivable.

• Use cash to pay off some long-term debt.

• Purchase additional inventory on credit (i.e., accounts payable).

• Sell some of the existing inventory at cost.

b. Assume that the company has a current ratio of 1.2. Now which of the above actions would improve this ratio?

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Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management

ISBN: 9781640551862

7th Edition

Authors: Kristin L. Reiter, Paula H. Song

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Question Posted: Mar 14, 2024 01:00 AM

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a. Modern Medical Devices has a current ratio of 0.5. Which of the following actions would improve

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a Actions to improve the current ratio of Modern Medical Devices with a current ratio of 05 Collect ...View the full answer

Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management

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