Question $20$

$5$ pts

At the start of the current month, Acme Company has cash of $$30,000,$ other current assets of $$120,000,$ and working capital of $$50,000.$ During the current month, Acme purchases $$10,000$ of merchandise inventory on account. This transaction:

Increases the net amount of cash provided by operating activities.

Decreases the net amount of cash provided by operating activities.

Increases the current ratio.

Has no effect on the current ratio.

None of the above.