Multiple Choice
A firm has $600,000 in current assets and $150,000 in current liabilities.Which of the following is correct if it uses cash to pay off $50,000 in accounts payable?
A) current ratio will increase to 5.0.
B) net working capital will increase to $500,000.
C) current ratio will decrease.
D) net working capital will not change.
Correct Answer:
Verified
Correct Answer:
Verified
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