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    butlerc3's Avatar
    butlerc3 Posts: 1, Reputation: 1
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    #1

    Feb 11, 2009, 06:51 PM
    Current Ratio
    Turner Co. presently has a current ratio of 0.8 to 1. The company has been informed by its bank that it must improve its current ratio to qualify for a line of credit. Which of the following actions would improve the curretn ration?
    A. use cash to pay off some current liabilities.
    B. Purchase addidtional marketable securities with cash
    C. Acquire a parcel of land in exchange for common stock
    D. purchase addidtional inventory on credit.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Feb 11, 2009, 07:07 PM

    To improve the current ratio you would need to reduce current liabilities or increase current assets.
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