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Poppy Corporation has a current ratio of 2 . 0 and a quick ratio of 1 . 6 . Poppy purchases additional inventory for cash.

Poppy Corporation has a current ratio of

2.0

and a quick ratio of

1.6 .

Poppy purchases additional inventory for cash. Which of the following occurs?

The current ratio will decrease.

Working capital decreases.

The current ratio will remain the same.

The quick ratio will increase.

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