1 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. C. d. e. f. g. A supplier is paid. A short-term bank loan is repaid. A long-term debt is paid off early. A customer pays off a credit account. Inventory is sold at cost. Inventory is sold for a profit.

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