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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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