Windham Corporation Has Current Assets of $400,000 and Current Liabilities

question 18

Multiple Choice

Windham Corporation has current assets of $400,000 and current liabilities of $500,000. Windham Corporation's current ratio would be increased by:

• A) the purchase of $100,000 of inventory on account.
• B) the payment of $100,000 of accounts payable.
• C) the collection of $100,000 of accounts receivable.
• D) refinancing a $100,000 long-term loan with short-term debt.

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Definitions:

Night Shift

A working shift that takes place during the nighttime, typically outside of conventional daytime working hours.

Day Shift

Typically, the work period during the daytime, often from morning to late afternoon, which can vary depending on the industry or company.

Unskilled Workers

Individuals who lack specific skills or qualifications and typically perform simple tasks that require limited training.

Skilled Workers

Individuals who have specialized training, experience, or education and are capable of performing specific tasks often requiring technical competency.