FM Chapter 3 Questions – Management of working capital (1)

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1. charles95 says

   May 19, 2023 at 12:41 pm

   The level of inventory does not affect the Quick ratio. So how is it then that a sale of inventory on credit changed both ratios upwards??

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   • John Moffat says

     May 19, 2023 at 4:10 pm

     If it is sold on credit then receivables will increase (and so the quick ratio will increase).

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