a. Suppose that General Hospital has a current ratio of 0.5. Which of the following actions would

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a. Suppose that General Hospital has a current ratio of 0.5. Which of the following actions would improve (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 (book value).

b. Now assume that General Hospital has a current ratio of 1.2. In this situation, which of the listed actions would improve this ratio?

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Fundamentals Of Healthcare Finance

ISBN: 9781640553224

4th Edition

Authors: Paula H. Song, Kristin L. Reiter

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Question Posted: Apr 01, 2024 02:01 AM

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a. Suppose that General Hospital has a current ratio of 0.5. Which of the following actions would

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Fundamentals Of Healthcare Finance

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