A company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of the company’s current ratio?
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| 1 |
Effect on the Current Ratio
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Easy |
| 1 | Ratios: Working Capital | 2:29 | |
| 2 | Ratios: Current Ratio | 4:00 | |
| 3 | Gross Profit vs Net Profit | 6:15 | |
| 4 | Profit Margin | 3:22 |