A modern medical devices has a current ratio of 05 which of, Ask an Expert

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a. Modern Medical Devices has a current ratio of 0.5. Which of the following actions would improve (i.e., increase) this ratio?

- Use cash to pay off current liabilities.

- Collect some of the current accounts receivable.

- Use cash to pay off some long-term debt.

- Purchase additional inventory on credit (i.e., accounts payable).

- Sell some of the existing inventory at cost.

b. Assume that the company has a current ratio of 1.2. Now, which of the above actions would improve this ratio?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92072479

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