General Hospital has a current ratio of 0.5 which of the following actions would improve (increase) this ratio? (Hint create a simple balance sheet that has a current ratio of 0.5 then judge how the financial transaction would affect the balance sheets.) Use cash to pay off current liabilities collect some of the current accounts receivable use cash to pay off some long-term debt purchase additional inventory on credit IE accounts payable sell some of the existing inventory at cost (book value)

General Hospital has a current ratio of 0.5 which of the following actions would improve (increase) this ratio? (Hint create a simple balance sheet that has a current ratio of 0.5 then judge how the financial transaction would affect the balance sheets.) Use cash to pay off current liabilities collect some of the current accounts receivable use cash to pay off some long-term debt purchase additional inventory on credit IE accounts payable sell some of the existing inventory at cost (book value)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 13MC: What information can best be elicited from a receivable ratio? A. company performance with current...

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