How would the following actions affect a firm's current ratio?

a: Inventory is purchased and paid for with cash, it is not purchased on account?

b: The firm takes out a short term bank loan to pay its overdue accounts payable.

c. A customer prepays in full for specially ordered merchandise that it will take 60 days to manufacture.

d. Inventory is sold at the firm's normal 35% markup over cost.

How would the following actions affect a firm's current ratio?

a. Unaffected, the current asset balance stays the same, cash just moves to inventory

b. Current Ratio goes up since Current Liabilities goes down, short term debt shouldn't technically be put into current liabilities when calculating a current ratio

c. depends on what the current ratio is before the transaction, cash will go up, but a pre-paid liability will increase current liabilities by the same amount until the merchandise is delivered

d. Increases, cash or accounts receivable will go up more than the decrease in inventory since it is marked up.