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  1. business
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  3. on january 1, 20x1, hawkeye inc. paid a supplier $

On January 1, 20X1, Hawkeye Inc. paid a supplier $3,000 for a previous purchase and...

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Accounting

  1. On January 1, 20X1, Hawkeye Inc. paid a supplier $3,000 for a previous purchase and delivery of inventory. The inventory had not been paid for, and the payment on January 1 reduced the amount Hawkeye Corp. owed to the supplier (accounts payable) by the payment amount. Would this transaction increase, decrease, or have no effect on the current ratio of Hawkeye Inc., which was equal to 1.25 before the transaction (2 points)? Explain your answer in terms of numerator and denominator effects (2 points).

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