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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Effect on the Current Ratio
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|4||Solving for Missing Amounts||Moderate|
|6||Calculating Operating Income||Hard|
|6||The Classified Balance Sheet||4:48|
|7||The Multistep Income Statement||12:44|
|8||Retained Earnings vs Shareholder's Equity||6:41|
|9||Ratios: Working Capital||2:29|
|10||Ratios: Current Ratio||4:00|
|11||Gross Profit vs Net Profit||6:15|