Supposed a firm pays a $ 50,000trade credit obligation to a supplier in cash. A) what impact

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Supposed a firm pays a $ 50,000trade credit obligation to a supplier in cash. A) what impact does this transaction haveon the firm current ratio if the initial current ratio equal 1?

1) what impact does this transaction have in the firm's current ratio if the intial current ratio is .1

2) what impact does this transaction have in the firm's current ratio if the intial current ratio is .5?

3) what impact does this transaction have in the firm current ratio if the initial current ratio equal 1.7?

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Related Book For answer-question

Quantitative Analysis for Management

ISBN: 978-0133507331

12th edition

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha

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Posted Date: Apr 04, 2024 11:42 AM

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Supposed a firm pays a $ 50,000trade credit obligation to a supplier in cash. A) what impact

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Impact of Paying Trade Credit Obligation on Current Ratio Paying a trade credit obligation with cash will decrease the current ratio Heres why Current ... View the full answer

Quantitative Analysis for Management

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