Perez Company reported an increase in inventories in the past year. Discuss the effect of this change

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Perez Company reported an increase in inventories in the past year. Discuss the effect of this change on the current ratio (current assets ÷ current liabilities). What does this tell a statement user about Perez Company’s liquidity?

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Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

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Question Posted: Dec 11, 2010 02:14 AM

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Perez Company reported an increase in inventories in the past year. Discuss the effect of this change

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An increase in inventories increases current assets which is in ...View the full answer

Intermediate Accounting

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