Question

The Miller Company paid off some of its accounts payable using cash. The company's current ratio...

The Miller Company paid off some of its accounts payable using cash. The company's current ratio is greater than 1.0 to 1. The company's current ratio would:

a

increase.

b

decrease.

c

remain unchanged.

d

impossible to determine from the information given.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
HYDRO COMPANY Balance Sheet December 31, 2015 Cash $40,000 Current liabilities $80,000 Accounts receivable (net) 80,000...
HYDRO COMPANY Balance Sheet December 31, 2015 Cash $40,000 Current liabilities $80,000 Accounts receivable (net) 80,000 10% Bonds payable 120,000 Inventory 130,000 Common Stock 200,000 Plant and equipment (net) 250,000 Retained earnings 100,000 Total assets $500,000 Total Liabilities and Stockholders' Equity $500,000 Sales revenues for 2015 were $800,000, gross profit was $320,000, and net income was $36,000. The income tax rate was 40 percent. One year ago, accounts receivable (net) were $76,000, inventory was $110,000, total assets were $460,000, and...
Suppose Jenny Inc. has a current ratio of 2.3. Which of the following would increase its...
Suppose Jenny Inc. has a current ratio of 2.3. Which of the following would increase its current ratio? 1) Writing off an accounts receivable. 2) Paying off an accounts payable. 3) Purchasing inventory using cash. 4) Purchasing intangible assets using cash.
Considered alone, which of the following would increase a company's current ratio? Group of answer choices:...
Considered alone, which of the following would increase a company's current ratio? Group of answer choices: A)A decrease in accounts receivable. B)A decrease in accrued liabilities. C)An increase in accounts payable. D)An increase in notes payable. E) An increase in net fixed assets.
For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $51,000, accounts...
For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $51,000, accounts receivable $100,000, inventories $114,000, prepaid expenses $21,000, accounts payable $60,000, and accrued expenses $60,000.  Use this information to determine the Current Ratio. (Round & enter your answers to one decimal place.)
For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $49,000, accounts...
For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $49,000, accounts receivable $100,000, inventories $109,000, prepaid expenses $18,000, accounts payable $60,000, and accrued expenses $52,000. Use this information to determine the Current Ratio. (Round & enter your answers to one decimal place.)
For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $33,000, accounts...
For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $33,000, accounts receivable $138,000, inventories $92,000, prepaid expenses $23,000, accounts payable $78,000, and accrued expenses $50,000. Use this information to determine the Current Ratio. (Round & enter your answers to one decimal place.)
For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $33,000, accounts...
For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $33,000, accounts receivable $110,000, inventories $84,000, prepaid expenses $15,000, accounts payable $61,000, and accrued expenses $59,000.  Use this information to determine the Current Ratio. (Round & enter your answers to one decimal place.)
Company A has a current ratio of 2.0 and its quick ratio is 1.6. The company...
Company A has a current ratio of 2.0 and its quick ratio is 1.6. The company has $5 million in current liabilities. The company’s inventory turnover ratio is 5. The company wants to improve its inventory turnover ratio so that it is equal to the industry average of 6.2, without changing its sales. Assume that the company can do this, and that the company uses the freed-up cash from the decline in inventory to reduce its accounts payable. What would...
!- The income statement should not be relied upon to accurately measure a firm's operating cash...
!- The income statement should not be relied upon to accurately measure a firm's operating cash generation because: It is based on cash accounting. It does not take into account the borrowings and repayments of debt. The income statement can be relied upon to accurately measure a firm's operating cash generation. it is based on accrual accounting 2- Which one of the following is NOT considered a working capital account? notes payable accounts receivable accrued liabilities accounts payable 3- The...
Amram Company's current ratio is 1.9. Considered alone, which of the following actions would reduce the...
Amram Company's current ratio is 1.9. Considered alone, which of the following actions would reduce the company's current ratio? a. Use cash to reduce accounts payable. b. Borrow using short-term notes payable and use the proceeds to reduce accruals. c. Borrow using short-term notes payable and use the proceeds to reduce long-term debt. d. Use cash to reduce accruals. e. Use cash to reduce short-term notes payable.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT