The balance sheets for Red Oak Inc. and Birch Co. reflect the following: Current assets Cash...

 

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The balance sheets for Red Oak Inc. and Birch Co. reflect the following: Current assets Cash Accounts receivable Inventory Other Noncurrent assets O A only. O B only. Both A and B Red Oak ONeither A nor B $ 8,000 42,000 32,000 8,000 456,000 $546,000 $ 45,000 50,000 451,000 $546,000 Total assets Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity Given the above information, if Red Oak sold some inventory at a price lower than its cost, A. Red Oak's current ratio would increase. B. Red Oak's quick ratio would increase. Birch $ 16,000 28,800 8,000 9,600 507,200 $569,600 $ 45,000 368,000 156,600 $569,600 The balance sheets for Red Oak Inc. and Birch Co. reflect the following: Current assets Cash Accounts receivable Inventory Other Noncurrent assets O A only. O B only. Both A and B Red Oak ONeither A nor B $ 8,000 42,000 32,000 8,000 456,000 $546,000 $ 45,000 50,000 451,000 $546,000 Total assets Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity Given the above information, if Red Oak sold some inventory at a price lower than its cost, A. Red Oak's current ratio would increase. B. Red Oak's quick ratio would increase. Birch $ 16,000 28,800 8,000 9,600 507,200 $569,600 $ 45,000 368,000 156,600 $569,600

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