Jone and Malay have current ratios of 0.9 and 2.5 respectively. If each company then makes a

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Jone and Malay have current ratios of 0.9 and 2.5 respectively. If each company then makes a purchase of inventories on credit, what will be the effect on the current ratio of each company.

Jone's current ratio will

A. increase

B. decrease

C. not change

Malay's current ratio will

A. increase

B. decrease

C. not change

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0078034640

7th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Jun 29, 2022 04:25 AM

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Jone and Malay have current ratios of 0.9 and 2.5 respectively. If each company then makes a

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ANSWER 1 B derese The urrent rti is liquidity rti tht mesures whether firm hs enugh resures t meet i... View the full answer

Fundamentals of Corporate Finance

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