At the end of 2016, Barker Corporations preliminary trial balance indicated a current ratio of...
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Accounting
At the end of 2016, Barker Corporations preliminary trial balance indicated a current ratio of 1.2. Management is contemplating paying some of its accounts payable balance before the end of the fiscal year. Explain the effect this transaction would have on the current ratio. Would your answer be the same if the preliminary trial balance indicated a current ratio of 0.8?
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