The firm chooses not to purchase new assets

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Reference no: EM131575447

If the firm chooses not to purchase new assets, pay down any debt or increase dividends, a increase in net income due to lower costs in production will

a. decrease the cash position of the firm, raising the current ratio.

b. increase the cash postion of the firm, raising the cash ratio.

c. increase the cash position of the firm, lowering the cash ratio.

Reference no: EM131575447

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