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Current ratio and asset turnover ratio

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A company's current ratio is 3.0. If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio and asset turnover ratio?

  • Current Ratio: Decrease; Asset turnover: Decrease
  • Current Ratio: no effect; Asset turnover; increase
  • Current Ratio: No effect; Asset turnover: No effect
  • Current Ratio: Increase; Asset turnover: increase

Reference no: EM131318258

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