The acquisition of inventory in an exchange for a company's stock would increase the current ratio of the company.
Answer the following statement true (T) or false (F)
True
The current ratio is current assets divided by current liabilities. Inventory is classified as a current asset and since it increases in this transaction, it would increase the current ratio.
You might also like to view...
If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations?
A. ethics B. implementation C. planning D. experience E. control
Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive, and she now wishes to cancel the order. Cheryl:
a. must pay $500 for the dress because the dress was specially ordered for her. b. must pay $500 for the dress because clothing is classified as a necessary. c. may disaffirm this executory contract because, while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary. d. must accept the dress and pay the reasonable value of the dress.
Shareholder wealth maximization means
A) maximizing dividends per share. B) maximizing stockholders equity. C) maximizing earnings per share. D) maximizing the price of existing common stock.
When applying for a job online, care must be taken to fill out the application form carefully.
What will be an ideal response?