A firm has the following financial data: Current assets $600,000 Fixed assets 400,000 Current liabilities 300,000 Inventory

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A firm has the following financial data:
Current assets $600,000
Fixed assets 400,000
Current liabilities 300,000
Inventory 200,000
If inventory increases by $100,000, what will be the impact on the current ratio, the quick ratio, and the net-working-capital-to-total-assets ratio? Show the ratios before and after the changes.
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Fundamentals of Investment Management

ISBN: 978-0078034626

10th edition

Authors: Geoffrey Hirt, Stanley Block

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