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Describe the effect of transaction on the company

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Reference no: EM133073056

A company's current ratio is 0.75. The company uses some of its cash to retire bonds due in 3 years.

a. Describe the effect of this transaction on the company's

i. Current ratio

ii. Asset Turnover ratio

iii. Cash to Working Capital

iv. Debt to Equity ratio

b. What accounting methods differences could affect the above ratios. Describe how.

Reference no: EM133073056

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