The conversation between human and AI assistant.
What will be effect in the current and quick ratio after this? Sells a vacant lot for $20,000 that had been used in its operations.
What if the company uses the money to invest in new equipment for its operations?
If the company uses the $20,000 to invest in new equipment, its current and quick ratios may decrease. This is because the company's current assets will decrease and its current liabilities will stay the same or possibly increase if the company takes out a loan to purchase the new equipment. However, investing in new equipment can also increase the company's overall performance and profitability in the long run.