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A Firm's New President Wants to Strengthen the Company's Financial

Question 21

Multiple Choice

A firm's new president wants to strengthen the company's financial position.Which of the following actions would make it financially stronger?


A) Increase inventories while holding sales and cost of goods sold constant.
B) Increase accounts receivable while holding sales constant.
C) Increase EBIT while holding sales constant.
D) Increase accounts payable while holding sales constant.
E) Increase notes payable while holding sales constant.

Correct Answer:

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