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Analyzing Liquidity Ratios Atlas Inc. issues short-term interest-bearing notes and uses the proceeds to purchase inventory. The company's profits for the year remain unchanged.
Analyzing Liquidity Ratios Atlas Inc. issues short-term interest-bearing notes and uses the proceeds to purchase inventory. The company's profits for the year remain unchanged. Indicate how the use of the notes would affect the following ratios: a. Current ratio a. Increase the ratio b. Decrease the ratio c. Have no effect on the ratio d. a or b b. Quick ratio a. Increase the ratio b. Decrease the ratio c. Have no effect on the ratio d. a or b
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