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A company has current assets of $475,000 and current habilities of $325,000 For each action on the night, indicate the effect on the current ratio
A company has current assets of $475,000 and current habilities of $325,000 For each action on the night, indicate the effect on the current ratio increase, decrease no change) Analyze each action independently of the others B. The company uses cash to pre-pay a bank loan that is not due for two years A Increase A The company collects cash from outstanding accounts receivable 8. Decrease B. The company recognizes insurance expense from a prepaid insurance asset No change A The company receives cash from issuing new shares of stock B. The company pays $10,000 for an insurance policy that takes efect next month
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