Question
Supposed a firm pays a $ 50,000trade credit obligation to a supplier in cash. A) what impact does this transaction haveon the firm current ratio
Supposed a firm pays a $ 50,000trade credit obligation to a supplier in cash. A) what impact does this transaction haveon the firm current ratio if the initial current ratio equal 1?
1) what impact does this transaction have in the firm's current ratio if the intial current ratio is .1
2) what impact does this transaction have in the firm's current ratio if the intial current ratio is .5?
3) what impact does this transaction have in the firm current ratio if the initial current ratio equal 1.7?
Need to show all the formula and all work how arrived to the answer.
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Impact of Paying Trade Credit Obligation on Current Ratio Paying a trade credit obligation with cash will decrease the current ratio Heres why Current ...Get Instant Access to Expert-Tailored Solutions
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
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