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Company A is facing a liquidity crisis and decided to sell some of its short-term receivables to a bank in order to raise cash. However,
Company A is facing a liquidity crisis and decided to sell some of its short-term receivables to a bank in order to raise cash. However, the bank only pays 90% of the value of the receivables. What should happen to this company's current, quick, and cash ratios? (1 paragraph maximum)
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