[TANSINYEE]

Got it !! Thanks ya

[TANSINYEE]

thank you so much!!

[TANSINYEE]

cant”

[TANSINYEE]

Thanks alot..

[TANSINYEE]

Currently: *assume that current asset including inventory*
current ratio – current asset / current liability
quick ratio – (current asset – inventory) / current liability

If increasing inventory:
current ratio – (current asset + new inventory) / (current liability + new inventory)
quick ratio – (current asset – inventory) / (current liability + new inventory)

*conclusion – It will be decrease in both current and quick ratio ?
*can I get an example from sir?

[Author]

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