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The company has $180,000 in current assets and $150,000 in current liabilities. Suppose that the company pays $35,000 cash owed to employees, which was

The company has $180,000 in current assets and $150,000 in current liabilities. Suppose that the company pays $35,000 cash owed to employees, which was captured previously as salaries payable. What effect does this cash payment have on the firm's current ratio? The ratio stays the same. The ratio increases. The ratio cannot be determined. The ratio decreases.

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