Turner Co. presently has a current ratio of 0.8. The company has been informed by its bank that it must improve its current ratio to qualify for a line of credit. Which of the following actions would improve the current ratio?
A) Use cash to pay off some current liabilities.
B) Purchase additional marketable securities with cash.
C) Acquire a parcel of land in exchange for common stock.
D) Purchase additional inventory on credit.
Correct Answer:
Verified
Q32: All other things the same, those who
Q41: Zack Company has a current ratio
Q45: Accounts receivable turnover will normally decrease as
Q46: A company's current ratio and an acid-test
Q48: The ratio of total cash,marketable securities,accounts receivable,and
Q50: Data from Fontecchio Corporation's most recent
Q51: The market price of Friden Company's common
Q53: Norton Inc.could improve its current ratio of
Q56: Purchasing inventory on credit increases the book
Q60: Selling used equipment at book value for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents