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Suppose a firm uses cash to cover a $50,000 accounts payable a) What impact does this transaction have on the firms current ratio if the

Suppose a firm uses cash to cover a $50,000 accounts payable

a) What impact does this transaction have on the firms current ratio if the initial current ratio equaled 1?

b) What impact does this transaction have on the firms current ratio if the initial current ratio is 0.5?

c) What impact foes this transaction have on the firms current ratio if the inital current ratio equaled 1.7?

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