37. A company with S60,000 in current assets and $35,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will A) remain the same and decrease, respectively. B) both decrease. 9 increase and remain the same, respectively. D) both increase.
37. A company with S60,000 in current assets and $35,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will A) remain the same and decrease, respectively. B) both decrease. 9 increase and remain the same, respectively. D) both increase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![37. A company with $60,000 in current assets and $35.000 in current liabilities pays a $1,000 current liability. As a result of this
transaction, the current ratio and working capital will
A) remain the same and decrease, respectively.
B) both decrease.
) increase and remain the same, respectively.
D) both increase.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F480de05b-a9a1-4a07-a45f-e008af177388%2F42566951-5904-446f-939e-6cdff3c44f01%2Fbnqxe4r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:37. A company with $60,000 in current assets and $35.000 in current liabilities pays a $1,000 current liability. As a result of this
transaction, the current ratio and working capital will
A) remain the same and decrease, respectively.
B) both decrease.
) increase and remain the same, respectively.
D) both increase.
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