Question: Assume that a firm s total assets and sales remain constant

Assume that a firm’s total assets and sales remain constant. Would an increase in each of the ratios below be associated with a cash inflow, a cash out-flow, or would there be no effect on cash?
a. Current ratio
b. Inventory turnover
c. Average collection period
d. Average payment period
e. Debt ratio
f. Net profit margin

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  • CreatedMay 13, 2015
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