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3 . Company A is facing a liquidity crisis and decided to liquidate some of its inventory to raise cash. Each dollar of inventory generates
Company A is facing a liquidity crisis and decided to liquidate some of its inventory to raise cash. Each dollar of inventory generates dollars of cash. What should happen to this company's current, quick, and cash ratios as a result of the reduction in inventory? Please answer "increase", "decrease", or "stay the same" in the space below. Current Ratio: Quick Ratio: Cash Ratio:
Company A is facing a liquidity crisis and decided to liquidate some of its inventory to raise cash. Each dollar of inventory generates dollars of cash. What should happen to this company's current, quick, and cash ratios as a result of the reduction in inventory? Please answer "increase", "decrease", or "stay the same" in the space below.
Current Ratio:
Quick Ratio:
Cash Ratio:
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