Molitor Company currently has a current ratio of 1.1. The company decides to borrow $1,000,000 from City National Bank for a period of six months. After the borrowing Molitor's current ratio will be
A) greater than 1.1
B) 1.1
C) less than 1.1
D) unable to determine with out more information

Question

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The Answer of Molitor Company currently has a current ratio of 1.1. The company decides to borrow $1,000,000 from City National Bank for a period of six months. After the borrowing Molitor's current ratio will be
A) greater than 1.1
B) 1.1
C) less than 1.1
D) unable to determine with out more information

Molitor Company Currently Has a Current Ratio of 1