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A companys current ratio is 30 if the company uses cash to


A company's current ratio is 3.0. If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio and asset turnover ratio?

  • Current Ratio: Decrease; Asset turnover: Decrease
  • Current Ratio: no effect; Asset turnover; increase
  • Current Ratio: No effect; Asset turnover: No effect
  • Current Ratio: Increase; Asset turnover: increase

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Finance Basics: A companys current ratio is 30 if the company uses cash to
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