Q2

4. 5. g. Equity multiplier h. Basic earnings power 2. For each of the following actions, determine what would happen to the current ratio. Assume noth- ing else on the balance sheet changes and that net working capital is positive. (LG3-1) a. Accounts receivable are paid in cash. b. Notes payable are paid off with cash. c. Inventory is sold on account. d. Inventory is purchased on account. e. Accrued wages and taxes increase. f. Long-term debt is paid with cash. g. Cash from a short-term bank loan is received. 6. F 7. V to