solution
Which of the following statements is CORRECT?
a. If a firm increases its sales and cost of goods sold while
holding its inventories constant, then, other things held constant,
its inventory turnover ratio will decrease.
b. A reduction in inventories held would have no effect on the
current ratio.
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Order Paper Nowc. An increase in inventories would have no effect on the
current ratio.
d. If a firm increases its sales and cost of goods sold while
holding its inventories constant, then, other things held constant,
its inventory turnover ratio will increase. e. A reduction in the
inventory turnover ratio will generally lead to an increase in the
ROE.
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