Liquidity ratios

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January 8, 2017 at 1:32 pm #365625
julietari
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When a person sold an inventory on a credit basis are not recievable supposed to increase at the same amount of the inventory sold, what is the reason for increase in both current asset and quick ratios, is it not suppose not to change
January 8, 2017 at 2:01 pm #365629
John Moffat
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Inventory is valued at cost not at the selling price (which will be higher).

So receivables increase by more than the fall in inventory.
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