Which of the above actions would improve this ratio

Reference no: EM13273759

General Hospital has a current ratio of 0.5. Which of the following actions would im- prove (increase) this ratio? (Hint: Create a simple balance sheet that has a current ratio of 0.5. Then, judge how the transactions below would affect the balance sheet.)

1. Use cash to pay off current liabilities. 2. Collect some of the current accounts receivable. 3. Use cash to pay off some long-term debt. 4. Purchase additional inventory on credit (i.e., accounts payable). 5. Sell some of the existing inventory at cost (book value).

Now assume that General Hospital has a current ratio of 1.2. In this situation, which of the above actions would improve this ratio?

Reference no: EM13273759

Questions Cloud

What is the energy of the ground state : A certain type of molecule has an excited energy states, plus the minimum energy ground state. what is the energy of the ground state

Calculate the vbi-nd-w-xn and xp : A pn-junction is uniformly doped and has dopant concentration of NA = 4 x10^16 cm-3 in the p-region at 300K. AT zero bias, 20% of the total space charge region (W) is extended in the p-region. Calculate Vbi, ND, W, xn and xp.

What is briggs & stratton capital gains yield : What growth rate would you have to use in the multiple-period valuation model to get the same expected return as you computed previously? What is Briggs & Stratton's capital gains yield?

Compute the woods age : A sample of wood from an archaeological excavation is dated by using a mass spectrometer to measure the fraction of 14C atoms. What is the wood's age

Which of the above actions would improve this ratio : Now assume that General Hospital has a current ratio of 1.2. In this situation, which of the above actions would improve this ratio?

Find the p-n junction led current with doping : An Al0.3Ga0.7As p-n junction LED with doping level ND = 1 x 10^18 cm-3 on n-side and NA=1x10^15 cm-3 on p-side has Vf = 0.9 V forward bias across its junction. The LED cross-section is 200 µm x 200 µm.

Explain the element uranium found on earth : The element Uranium found on earth is most likely formed by which nucleosynthetic process

What is the vertical velocity of the wheel : An airplane is in level flight at a velocity of 158 m/s and at an altitude of 1300 meters when one of its wheels falls off. What is the vertical velocity of the wheel

Compute working capital and the current ratio : Compute working capital and the current ratio for both companies and on the basis of your answers to (1), which company appears to be more liquid?

User Account

All Pages