Lofland's has $20 million in current assets and $10 million in current liabilities, while smaland's current assets are $10 million versus $20 million of current liabilities. both firms would like to "window dress" their end-of-year financial statements, and to do so each plans to borrow $10 million on a short-term basis and to then hold the borrowed funds in their cash accounts. which of the statements below best describes the results of these transactions? a. the transaction would improve both firms' financial strength as measured by their current ratios. b.the transactions would raise lofland's financial strength as measured by its current ratio but lower smaland's current ratio. c.the transactions would lower lofland's financial strength as measured by its current ratio but raise smaland's current ratio. d.the transaction would have no effect on the firm' financial strength as measured by their current ratios. e.the transaction would lower both firm' financial strength as measured by their current ratios

c.The transactions would lower Lofland's financial strength as measured by its current ratio but raise Smaland's current ratio.

Explanation:

The current ratio compares current assets with current liabilities showing how many dollars of assets are there for a dollar of liabilities. This tells investors about the company ability to pay short-term obligations or those due within one year.

Current Ratio = Current Asset (CA) / Current Liabilities (CL)

Lofland's NOW = 20 M CA / 10 M CL = 2.00

Lofland's AFTER = 30 M CA / 20 M CL = 1.50

Smaland's NOW = 10 M CA / 20 M CL = 0.50

Smaland's AFTER = 20 M CA / 30 M CL = 0.67

Lofland's current ratio gets lower, so its financial strength as well. Instead, Smaland's current ratio gets higher and It´s financially stronger.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

answerblank(1) //inferiorblank(2) ramen noodles;