Given that the current ratio is 2:1 and the assets and liabilities are $20,000 and $10,000 respectively. Now if an amount of $20,000 is added to assets and liabilities equally, which one is correct below? Oa. No Change in Current Ratio O b. Increase in the current ratio OC. Decrease in current ratio O d. The current ratio will double.

Given that the current ratio is 2:1 and the assets and liabilities are $20,000 and $10,000 respectively. Now if an amount of $20,000 is added to assets and liabilities equally, which one is correct below? Oa. No Change in Current Ratio O b. Increase in the current ratio OC. Decrease in current ratio O d. The current ratio will double.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7P: Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its...

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