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A company buys parts on credit to stock up on inventory in anticipation of higher holiday sales. What is the impact on current assets and

A company buys parts on credit to stock up on inventory in anticipation of higher holiday sales. What is the impact on current assets and current ratio at the time the inventory is purchased? Assume the current ratio is 2 before the purchase.

Current assets increase and current ratio increases

Current assets increase and current ratio decreases

Current assets increase and current ratio stays the same

Current assets decrease and current ratio increases

Current assets stay the same and current ratio decreases

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