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Suppose a firm pays a 50,000$ trade credit obligation to a supplier in cash. a. What impact does this transaction have on the firm's current ratio if the initial current ratio equaled 1? b. What impact does this transaction have on the firm's current ratio if the initial current ratio is 0.5? c. what impact does this transaction have on the firm's current ratio if the initial current ratio equalled 1.7?

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Financial Management, Finance

Category:- Financial Management
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