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A. A firm has $1.2 million in current assets and $1.0 million in current liabilities. If it uses $.5 million of cash to pay off some of its accounts

A. A firm has $1.2 million in current assets and $1.0 million in current liabilities. If it uses $.5 million of cash to pay off some of its accounts payable, what will happen to the current ratio? What happens to net working capital?
B. A firm uses cash on hand to pay for additional inventories. What will happen to the current ratio? What will happen to the quick ratio?

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