An increasing current ratio is an indication of a potential for a higher return on investment. True/False

A firm with retained earnings of $200,000, $400,000 of debt financing, $100,000 of preferred stock financing, and $300,000 of common stock financing, where the shares were sold as no-par shares, would probably also have $600,000 of total assets. True/False

Is Net working capital is negative if: Current liabilities are used to purchase long-term as well as current assets??