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a. A previously declared stock dividend were distributed b. The company wrote off an uncollectible receivable. c.The company sold merchandise on open account that earned a normal gross margin. d. The company purchased inventory on open account.
Option 'c'.
A previously declared stock dividend were distributed.
The answer is option C.
The company will generate cash increasing the current assets, further increasing the current ratio. The options A, B and D will decrease the current assets. Hence, the answer is option C.
