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The Johnson Company has a current ratio of 1.45. If the company purchases inventory for $600,000 using accounts payable with terms net 90 days, what

The Johnson Company has a current ratio of 1.45. If the company purchases inventory for $600,000 using accounts payable with terms net 90 days, what will the current ratio be immediately after this purchase?

a. equal to 1.45

b. not enough information to answer question

c. less than 1.45

d. greater than 1.45

Please give a good explanation as to why it increases/decreases if current assets and current liabilities increase by the same amount

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