Problem

Assume that Kulpa Company has a current ratio of 0.7. Which of the following transactions...

Assume that Kulpa Company has a current ratio of 0.7. Which of the following transactions would increase this ratio?

a. Purchasing merchandise inventory on credit.

b. Selling merchandise inventory at cost for cash.

c. Collecting accounts receivable in cash.

d. Paying off accounts payable with cash.

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