Question: Do the following events decrease, increase, or have no effect on a firm s current ratio? A ) Inventory is purchased with cash on hand.

Do the following events decrease, increase, or have no effect on a firms current ratio?
A) Inventory is purchased with cash on hand.
B) Company XYZ takes out a 5-year loan, with the money being used to pay suppliers.
C) A customer pays a past due bill (the bill was not written off yet).
D) Company XYZ establishes a line of credit with Bank ABC, which will allow it to borrow money in the future.
E) The company sells a 10-year old machine, receiving cash from the sale.

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