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Problem 1: When cash sales resulted in some loss, compare the working capital ratio after the sale with the ratio before the sale:
a. The ratio after the sale is greaterb. The ratio before the sale is equal to the ratio after the salec. The ratio before the sale is greaterd. There is no effect at all Problem 2: Which of the following transactions will result in an increase in current ratio , assuming that the ratio is presently 2:1 ?
a. Repaid a 90 day loan b. Liquidated long-term liabilityc. Purchased merchandise on account d. Received payment on accounts receivable
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