A company has current assets of $200 (cash of $65 and inventory of $135) and current liabilities of $120. At year end, management uses cash of $60 to repay accounts payable. After the repayment, what is the effect on the company's current ratio, and is liquidity better or worse?  

Answer rating: 100% (QA)

Heres how the repayment affects the companys current ratio and liquidity Before Repayment Current As... View the full answer