. END-OF-CHAPTER PROBLEMS :13.1 a. General Hospital has a current ratio of 0.5. Which of the following actions would improve (increase) this ratio? (Hint: Create a simple balance sheet that '3 . has a current ratio of 0.5. Then, judge how the following transactions would : affect the balance sheet.) 0 Use cash to pay off current liabilities. 0 Collect some of the current accounts receivable. - Use cash to pay off some long-term debt. 0 Purchase additional inventory on credit (i.e., accounts payable). 0 Sell some of the existing inventory at cost (book value). b. Now assume that General Hospital has a current ratio of 1.2. in this situation. which of the listed actions would improve this ratio? 3.2 Southwest Physicians, a medical group practice in Oklahoma City, is just being ' formed. It will need $2 million of total assets to generate $3 million in revenues. Furthermore, the group expects to have a total margin of 5 percent. The group is considering two nancing alternatives. First, it can use all-equity nancing by . requiring each physician to contribute her pro rata share. Second, the practice can nance up to 50 percent of its assets with a bank loan. Assuming that the debt alternative has no impact on the expected total margin, what IS the difference