Business Transaction $2$

Universal Computer Corp. $($UCC$)$ switches from holding an available inventory to a just$-$in$-$time inventory system, thereby reducing its inventory by $80\mathrm{.}00\%.$

Financial Account

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Inventory

Accounts payable

Prepaid expenses

Total assets

Common stock

Financial Ratio

Ratio$$s Behavior

Average collection periodNo change $$Inventory turnoverIncreases $$Fixed assets turnoverNo change $$Quick ratioNo change $$Return on assetsIncreases $$Debt ratioIncreases $$