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A company has current assets of $200 (cash of $65 and inventory of $135) and current liabilities of $120. At year end, management uses cash
A company has current assets of $200 (cash of $65 and inventory of $135) and current liabilities of $120. At year end, management uses cash of $60 to repay accounts payable. After the repayment, what is the effect on the company's current ratio, and is liquidity better or worse?
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Heres how the repayment affects the companys current ratio and liquidity Before Repayment Current As...
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Financial ACCT2
Authors: Norman H. Godwin, C. Wayne Alderman
2nd edition
9781285632544, 1111530769, 1285632540, 978-1111530761
