For each of the following liquidity ratios, indicate whether the change would be viewed as an improvement
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For each of the following liquidity ratios, indicate whether the change would be viewed as an improvement or deterioration:
a. A decrease in the receivables turnover
b. A decrease in the collection period
c. An increase in the days sales in inventory
d. An increase in the inventory turnover
e. A decrease in the acid-test ratio
f. An increase in the operating cycle
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Related Book For
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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