Question: A company has $1,000,000 of current assets, a current ratio of 1.8:1, and an acid test ratio of 1.4:1. The first transaction is purchased $80,000

A company has $1,000,000 of current assets, a current ratio of 1.8:1, and an acid test ratio of 1.4:1. The first transaction is purchased $80,000 of merchandise inventory on credit. What is the new current ratio?

Do not copy Chegg and give a proper explanation.

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