Question: Would the following events increase or decrease a firms current ratio? a. Inventory is sold. b. The firm takes out a bank loan to pay

Would the following events increase or decrease a firm’s current ratio?

a. Inventory is sold.

b. The firm takes out a bank loan to pay its suppliers.

c. The firm arranges a line of credit with a bank that allows it to borrow at any time to pay its suppliers.

d. A customer pays its overdue bills.

e. The firm uses cash to buy additional inventory.

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