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Business, 25.05.2021 18:30 Geo777

Which of the following statements is CORRECT? a. A reduction in inventories would have no effect on the current ratio. b. If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase. c. An increase in inventories would have no effect on the current ratio. d. If a firm increases its sales while holding its inventories constant, then, other things held constant, its fixed assets turnover ratio will decline. e. A reduction in the inventory turnover ratio will generally lead to an increase in the ROE.

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