A tire manufacturer has recently discovered that numerous lots of tires produced at one of their plants over recent months used a defective synthetic
material. The result was that these tires are far too likely to rupture at much
lower air pressure levels than normal. This has led to many accidents,
including some fatalities. The company has not been able to determine why
the material was defective. Which of the following is likely to be true in this
situation?
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Afirm wants to strengthen its financial position. which of the following actions would increase its current ratio? a. reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment.b. use cash to repurchase some of the company's own stock.c. borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year.d. issue new stock, then use some of the proceeds to purchase additional inventory and hold the remainder as cash.e. use cash to increase inventory holdings.