Respuesta :
After the borrowings, the new current ratio of Company C becomes rising more than the provided current ratio, that is, 0.9.
What is a current ratio?
A current ratio is an accounting ratio that is computed by dividing the short-term assets by the short-term obligations.
Given values:
Let the new current ratio be 'X'.
Current ratio: 0.9
Amount borrowed: $800,000
Equation of new current ratio is formed as:
[tex]\rm\ New \rm\ Current \rm\ Ratio=\frac{\rm\ Current \rm\ Assets + \rm\ Amount \rm\ borrowed }{\rm\ Current \rm\ Liabilities + \rm\ Amount \rm\ borrowed} \\\rm\ New \rm\ Current \rm\ Ratio=\frac{0.9X + \$800,00 }{X + \$800,000}[/tex]
Therefore, when the amount of $800,000 is borrowed by Company C, then it leads to rising in current assets as well as a rise in current liabilities which ultimately makes the rise in the overall current ratio.
Learn more about the current ratio in the related link:
https://brainly.com/question/1114476
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