Current Ratio. What effect would the following actions have on a ﬁrm’s current ratio? Assume that...

Current Ratio. What effect would the following actions have on a ﬁrm’s current ratio? Assume that net working capital is positive.

Inventory is purchased.
A supplier is paid.
A short-term bank loan is repaid.
A long-term debt is paid off early.
A customer pays off a credit account.
Inventory is sold at cost.
Inventory is sold for a proﬁt.

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