Which of the above actions would improvethis ratio

Reference no: EM13292598

a. Modern Medical Devices has a current ratio of 0.5. which of the following actions would improve(i.e.,increase) this ratio?

- use cash to pay off current accounts liabilities.
- collect some of the current accounts receivable
- use cash to pay off some long term debt
- purchase additional inventory on credit(i.e. accounts payable)
- see some of the existing inventory at cost

b. assume that the company has a current ratio of 1.2. now which of the above actions would improvethis ratio?

Reference no: EM13292598

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