Suppose a firm pays a 50000 trade credit obligation to a, Financial Management

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Suppose a firm pays a 50000 trade credit obligation to a

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 intial current ratio equaled 1?

b. What impact does this transaction have on the firm's current ratio if the intial current ratio is 0.5?

c. what impact does this transaction have on the firm's current ratio if the intial current ratio equaled 1.7?

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Financial Management: Suppose a firm pays a 50000 trade credit obligation to a

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Financial Management: Suppose a firm pays a 50000 trade credit obligation to a

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