Multiple Select Question

Select all that apply

What are reasons why a well$-$managed company sometimes attempts to reduce its current ratio? $($Choose every correct answer.$)$

A high current ratio may be a sign that the company has not made the most productive use of its assets.

A high current ratio means high depreciation expense.

Assets like accounts receivable and merchandise inventory do not earn a high ROI.

If the current ratio is too high, it will become more difficult to obtain credit.

Funds freed up by reducing the current ratio can be invested in new production equipment or marketing efforts.