Question: Analyzing the Impact of Transactions on the Current Ratio BSO, Inc., has a current ratio of 2.0 ( = $1,000,000 ÷ $500,000). For each of the following transactions, determine whether the current ratio will increase, decrease, or remain the same.
(a) Purchased $20,000 of new inventory on credit.
(b) Paid accounts payable in the amount of $50,000.
(c) Recorded accrued salaries in the amount of $100,000.
(d) Borrowed $250,000 from a local bank to be repaid in 90 days.