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he balance sheets for Red Oak Inc. and Birch Co. reflect the following: Red Oak Birch Current assets Cash $ 8,000 $ 16,000 Short-term investments

he balance sheets for Red Oak Inc. and Birch Co. reflect the following:

Red Oak Birch
Current assets
Cash $ 8,000 $ 16,000
Short-term investments 4,800 0
Accounts receivable 42,000 28,800
Inventory 27,200 8,000
Other 8,000 9,600
Noncurrent assets 456,000 507,200
Total assets $546,000 $569,600
Current liabilities $ 48,000 $ 48,000
Long-term liabilities 50,000 368,000
Stockholders equity 448,000 153,600
Total liabilities and stockholders equity $546,000 $569,600

Given the above information, if Red Oak collected some accounts receivable in full,

A. Red Oaks current ratio would increase.

B. Red Oak's quick ratio would increase.

a. Neither A nor B

b. B only.

c. A only.

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