1. If increased credit limits to generate sales, paid suppliers more slowly, sold account receivables, capitalized leases that were previously called operating leases, increased bad debt expense, and wrote down inventory, what would be the impact on cash and the current ratio?
Which one makes more sense to the quick ratio or the current ratio?
2. Albert takes out a loan of $30,000, and is required to pay back with a payment of $20,000 at the end of the second year, and $11,000 at the end the fourth year. Interest is payable quarterly. What is the nominal rate of interest charged on the loan?