Question: please answer without using exel 13.1 a. General Hospital has a current ratio of 0.5. Which of the following actions would improve (increase) this ratio?
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 has a current ratio of 0.5. Then, judge how the following transactions would affect the balance sheet.) - Use cash to pay off current liabilities. - Collect some of the current accounts receivable. - Use cash to pay off some long-term debt. - Purchase additional inventory on credit (i.e., accounts payable). - 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
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