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How does the ratio change if the firm pays off

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Reference no: EM132659844

Question 1) Assume that a firm has a CR = 1.5 ($1.5 million in current assets and $1 million in current liabilities). How does the ratio change if the firm pays off $0.5 million current liabilities?

Question 2) If the firm's existing CR = 0.8, what would be the new CR after paying off the $0.5 million of current liabilities?

Reference no: EM132659844

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