Assume that a firms total assets and sales remain constant. Would an increase in each of the

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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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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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