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How would the following actions affect a firms current, quick and cash ratios? (a) Inventory is sold (b) The firm takes out a bank loan
How would the following actions affect a firms current, quick and cash ratios?
(a) Inventory is sold
(b) The firm takes out a bank loan to pay its suppliers
(c) The firm arranges a line of credit with a bank that allows it to borrow at any time to pay its suppliers
(d) A customer pays its overdue bills
(e) The firm uses cash to purchase additional inventories
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