Company A is facing a liquidity crisis and decided to draw on its credit line to increase cash holdings. The credit line loan has a maturity of 3 years and no payments are due before 3 years, other than interest payments. What should happen to this company's current, quick and cash ratios?

Company A is facing a liquidity crisis and decided to draw on its credit line to increase cash holdings. The credit line loan has a maturity of 3 years and no payments are due before 3 years, other than interest payments. What should happen to this company's current, quick and cash ratios?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter5: Evaluating Operating And Financial Performance

Section: Chapter Questions

Problem 1aM

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