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What impact this transition have on the firm current ratio

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Reference no: EM132003956

Question - Suppose a firm pays a $50,000 trade credit obligation to a supplier in cash.

What impact does this transition have on the firm's current ratio if the initial current ratio equaled 1?

What impact does this transition have on the firm's current ratio if the initial current ratio equaled 0.5?

What impact does this transition have on the firm's current ratio if the initial current ratio equaled 1.7?

Reference no: EM132003956

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