Question: 18. Which of the following actions would decrease the current ratio (assuming an initial current ratio of 1.8, and current liabilities equal to $1,000,000)? Borrow
18. Which of the following actions would decrease the current ratio (assuming an initial current ratio of 1.8, and current liabilities equal to $1,000,000)? Borrow $100,000 in short term debt und deposit this money (i.c., $100,000) into the firm's cash account b. Borrow $200,000 in long-term debt to buy $200,000 worth of additional inventory c. Borrow $50,000 of short-term debt and use the proceeds to pay all operating expenses sooner, thus lowering accruals (ie, accrued expenses) by 550,000 & Sell $250,000 of fixed assets to pay off an equal amount of long-term debt, c. None of the above that is none of the actions listed about will decrease the current ratio
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