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Q2. What effect would the following actions have on a firm's current ratio? Assume that net working capital is positive a. Inventory is purchased b.

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Q2. What effect would the following actions have on a firm's current ratio? Assume that net working capital is positive a. Inventory is purchased b. A supplier is paid. c. A short-term bank loan is repaid. d. A long-term debt is paid off early. e. A customer pays off a credit account. f. Inventory is sold at cost. g. Inventory is sold for a profit (6 Marks)

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