Use the Following Information for Questions

question 63

Short Answer

Use the following information for questions.
Nelly Inc. reported net credit sales of $24,000,000 and cost of goods sold of $18,000,000 for the year. The average inventory for the year was $6,000,000.
-If a company has a current ratio of 1.3:1, what effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio?

---

Definitions:

Prostate Gland

A gland in the male reproductive system that produces fluid to nourish and transport sperm.

Urethra

The tube through which urine is discharged from the bladder to the exterior of the body in both sexes, and also conveys semen in males.

Penis

A male reproductive organ used for sexual intercourse and urination.

Corpus Albicans

A small, white scar tissue that forms in the ovary at the site of a ruptured follicle after ovulation.