All else being equal what would increase a company's current ratio?

Question

All else being equal what would increase a company's current ratio?

Answer 1

Sale of common stock is one possibility.

Cash (dr)

Common Stock (cr)   number of shares * par value

APIC (cr)        amount received in excess of par

Since current ratio = current assets / current liabilities and cash has increased with no effect on liabilities, then the current ratio would increase.

Hope this helps.