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Would the following events increase or decrease a firm's current ratio? Note: If there is no effect, select No change. a . Inventory is
Would the following events increase or decrease a firm's current ratio? Note: If there is no effect, select No change". a Inventory is sold. b The firm takes out a bank loan to pay its suppliers. c The firm arranges a line of credit with a bank that allows it to borrow at any time to pay its suppliers. d A customer pays its overdue bills. e The firm uses cash to buy additional inventory.
Would the following events increase or decrease a firm's current ratio?
Note: If there is no effect, select No change".
a Inventory is sold.
b The firm takes out a bank loan to pay its suppliers.
c The firm arranges a line of credit with a bank that allows it to borrow at any time to pay its suppliers.
d A customer pays its overdue bills.
e The firm uses cash to buy additional inventory.
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