Jones Company reported an increase in inventories in the past year. Discuss the effect of this change

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Jones Company reported an increase in inventories in the past year. Discuss the effect of this change on the current ratio (current assets ÷ current liabilities). What does this tell a statement user about Jones Company’s liquidity?

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Intermediate Accounting principles and analysis

ISBN: 978-0471737933

2nd Edition

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

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Question Posted: May 10, 2012 12:58 AM

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Jones Company reported an increase in inventories in the past year. Discuss the effect of this change

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An increase in inventories increases current assets which is in ...View the full answer

Intermediate Accounting principles and analysis

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