Walter industries’ current ratio is 0.5. considered alone, which of the following actions would increase the company’s current ratio?

a. borrow using short-term notes payable and use the cash to increase inventories.

b. use cash to reduce accruals.

c. use cash to reduce accounts payable.

d. use cash to reduce short-term notes payable.

e. use cash to reduce long-term bonds outstanding.

a. Borrow using short-term notes payable and use the cash to increase inventories.

Explanation:

The formula to compute the current ratio is shown below:

Current ratio = Total Current assets ÷ total current liabilities  

where,

The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets

And, current liabilities would be

= Short-term obligations + Accounts payable

If the current ratio is 0.5 which means that the current asset is 1 and the current liabilities are 2 so the most appropriate option is a.

there's 11 people for the 1st position. then, no matter who gets it, there's only 10 left for the second, and then 9 left for the third. 11 x 10 x 9 = 990.   the answer is there are 990 different ways the positions can be filled by these applicants

answer; niosh, the national institute for occupational safety and health;