a firm's current ratio exceeds 1.0, what happens as a result of paying cash to reduce accounts payable? net working capital increases current ratio decreases current ratio increases net working capital decreases
a firm's current ratio exceeds 1.0, what happens as a result of paying cash to reduce accounts payable? net working capital increases current ratio decreases current ratio increases net working capital decreases
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 3MC: Define the term capital intensity. Explain how a decline in capital intensity would affect the AFN,...
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If a firm's current ratio exceeds 1.0, what happens as a result of paying cash to reduce accounts payable?
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net working capital increases
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current ratio decreases
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current ratio increases
-
net working capital decreases
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