Trade credit obligation to a supplier in cash

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Reference no: EM13970826

Suppose a firm pays a 50,000$ trade credit obligation to a supplier in cash. a. What impact does this transaction have on the firm's current ratio if the initial current ratio equalled 1? b. What impact does this transaction have on the firm's current ratio if the initial current ratio is 0.5? c. what impact does this transaction have on the firm's current ratio if the initial current ratio equalled 1.7?

Reference no: EM13970826

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