Question: Current Ratio . What effect would the following actions have on a rms current ratio? Assume that net working capital is positive. Inventory is purchased.

Current Ratio. What effect would the following actions have on a rms current ratio? Assume that net working capital is positive.

  1. Inventory is purchased.
  2. A supplier is paid.
  3. A short-term bank loan is repaid.
  4. A long-term debt is paid off early.
  5. A customer pays off a credit account.
  6. Inventory is sold at cost.
  7. Inventory is sold for a prot.

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