Current Ratio What effect would the following actions have on a firms current ratio assume that net
Question:
Current Ratio What effect would the following actions have on a firm’s current ratio assume that net working capital is positive.
a. Inventory is purchased.
b. A supplier is paid.
c. A short-term bank loan is repaid.
d. A long-term debt is paid off early.
e. A customer pays off a credit account.
f. Inventory is sold at cost.
g. Inventory is sold for a profit.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 73% (15 reviews)
a If inventory is purchased with cash then there is no change in the current ratio If inventory is p...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
What impact would the following actions have on the operating and cash conversion cycle s? Would the cycles increase, decrease, or remain unchanged? a. More raw material than usual is purchased. b....
-
What impact would the following actions have on the operating and cash conversion cycle s? Would the cycles increase, decrease, or remain unchanged? a. Less raw material than usual is purchased. b....
-
What impact will the following actions have on the firm's cash balance? a. The firm sells some goods from inventory. b. The firm sells some machinery to a bank and leases it back for a period of 20...
-
You would like to buy a house in in 16 years and estimate that you will need a deposit of $73,014. You plan to make bi-weekly deposits into an account that you hope will earn 7.05%. How much do you...
-
Skylab, the largest spacecraft ever to fall back to the Earth, met its fiery end on July 11, 1979, after flying directly over Everett, WA, on its last orbit. On the CBS Evening News the night before...
-
Find each of these values? a) (133 mod 23 + 261 mod 23) mod 23 b) (457 mod 23 182 mod 23) mod 23
-
Delineate the differences between components, entities, items, and CIs and their Entity Relationships (ERs)?
-
Nevin Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $18 per year. During November 2014, Nevin sells 12,000 subscriptions beginning with the December...
-
Sketch a diagram or a flow chart to explain how does theautonomic nervous system exert its effects on its target tissue andorgans. Give a specific example to illustrate your response.
-
Dwight Donovan, the president of Donovan Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to...
-
Calculating Cash Flow for 2007, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.
-
Current Ratio and Quick Ratio In recent years, Dixie Co. has greatly increased its current ratio. At the same time, the quick ratio has fallen. What has happened? Has the liquidity of the company...
-
Study the following paragraphs. Then write an appropriate subject line and opening sentence for each one. My name is Rachel Rivera, and I am looking for a new computing device, and frankly I dont...
-
Read and analyze the document "Product life cycle and its strategies" and perform an analysis of the following products at the given stage. You are asked to explain what actions or marketing...
-
For years, Janet McFarland's friends and family raved about her homemade jellies and salsas. Janet traditionally canned several gallons of salsa, ladled it into decorative pint jars, wrapped them,...
-
Explain why you disagree with their position.It is not important whether you actually disagree or not. Instead, your goal is to construct a well-supported, logical counterargument, demonstrating your...
-
Gingerbread House Inc. (GHI) is a bakery chain that sells both in a wholesale and retail environment. Gingerbread can be baked and sold up to five months after being packaged. Seasonal shapes and...
-
Prepare a Word document where you answer the following premises and questions as a guide for your written work: What are the two types of pricing environments for sales to external consumers? How is...
-
Each part of Figure Q20.12 shows two points near two charges. Compare the electric field strengths \(E_{1}\) and \(E_{2}\) at these two points. Is \(E_{1}>E_{2}, E_{1}=E_{2}\), or \(E_{1}
-
Players A, B, and C toss a fair coin in order. The first to throw a head wins. What are their respective chances of winning?
-
Why are two separate ITO layers required in a touchscreen display?
-
If the Crash Davis Driving School has a 14.2 percent ROE and a 25 percent payout ratio, what is its sustainable growth rate?
-
Based on the following information, calculate the sustainable growth rate for Southern Sky: Profit margin = 7.4% Capital intensity ratio = 0.55 Debt-equity ratio = 0.30 Net income = $70,000 Dividends...
-
Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 1.75 Profit margin = 8.3% Equity multiplier = 1.85 Payout ratio = 40% Bethesda Mining Company...
-
The Presentation Layer ER Diagram shown in conjunction with part a below is focused around students who participate in sports and also enroll in classes. Please base your answer to this question on...
-
Establishment Industries borrows $1,040 million at an interest rate of 7.2%. It expects to maintain this debt level into the far future. Establishment will pay tax at an effective rate of 38%. What...
-
The current price of one share of XYZ stock is 56.50. A long straddle (one long call and one long put) on the stock with a strike price of K and one year to expiration has a total cost of 12.00. The...
Study smarter with the SolutionInn App