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Question 25 (2.5 points) All else constant, which of the following transactions will decrease the debt ratio (i.e., total debt / total assets), assuming that
Question 25 (2.5 points) All else constant, which of the following transactions will decrease the debt ratio (i.e., total debt / total assets), assuming that the current debt ratio of the company is 60 percent? 1) Cash is used to pay off accounts payable. 2) Fixed assets are sold for cash and the cash is deposited into the firm's checking account. 3) A new short-term bank loan is used to pay down the company's accounts payable balance. 4) Accounts receivable are collected and deposited into the firm's checking account. 5) Long term debt is issued to finance the purchase of inventory
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