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A company has 14,000 in cash, 37,000 in accounts recievable, 2,500 in supplies, 52,000 in accounts payable and 12,400 in wages payable. If the company
A company has 14,000 in cash, 37,000 in accounts recievable, 2,500 in supplies, 52,000 in accounts payable and 12,400 in wages payable. If the company uses cash to pay off 8,000 of the wages payable, which of the following statements is correct? 1 ) The company's current ratio will decrease. 2) the company's current ratio will not change. 3) the company's current ratio will increase.
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