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Levels Tought:Elementary,Middle School,High School,College,University,PHD
MCS,PHD Argosy University/ Phoniex University/ Nov-2005 - Oct-2011
Professor Phoniex University Oct-2001 - Nov-2016
Fact Pattern:
Tosh Enterprises reported the following account information:
Accounts receivable
$400,000
Accounts payable
260,000
Bonds payable, due in 10 years
600,000
Cash
200,000
Interest payable, due in 3 months
20,000
Inventory
$800,000
Land
500,000
Short-term prepaid expense
80,000
What will happen to the ratios below if Tosh Enterprises uses cash to pay 25% of the accounts payable?
Current Ratio
Quick Ratio
Increase
Decrease
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