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    siya555's Avatar
    siya555 Posts: 1, Reputation: 1
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    #1

    Aug 29, 2012, 02:16 AM
    Current ratio
    How does a cash purchase of inventory affect current ratio
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Aug 29, 2012, 04:51 AM
    How is the current ratio computed? Then, how is that computation affected by an increase in inventory and a decrease in cash of exactly the same amount?
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