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For Each of the Following Items,explain Its Significance and Show

Question 109

Essay

For each of the following items,explain its significance and show how the ratio mentioned is calculated:
a.A decrease in the current ratio
b.An increase in inventory turnover
c.An increase in the days' sales in receivables
d.A decrease in the debt ratio
e.An increase in the rate of return on net sales

Correct Answer:

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a.A decrease in the current ratio means ...

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