13.1.

A. General Hospital has a current ratio of 0.5 which of the following actions would improve (increase) this ratio? (Hint create a simple balance sheet that has a current ratio of 0.5 then judge how the financial transaction would affect the balance sheets.)

• Use cash to pay off current liabilities
• collect some of the current accounts receivable
• use cash to pay off some long-term debt
• purchase additional inventory on credit IE accounts payable
• sell some of the existing inventory at cost (book value)