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Grayille Gates, Inc. is planning to increase its average inventory levels. Grayille believes that this policy change will have no effect on either sales or
Grayille Gates, Inc. is planning to increase its average inventory levels. Grayille believes that this policy change will have no effect on either sales or costs. Any asset changes resulting from this new policy will be offset by a corresponding and equal change in equity. All else constant, what effect would this new collection policy have on the firm's: 6. Return on equity (ROE). (INCREASE, DECREASE, NO EFFECT) 7. Quick ratio. (INCREASE, DECREASE, NO EFFECT) 8. Return on assets (ROA). (INCREASE, DECREASE, NO EFFECT) 9. Debt ratio. (INCREASE, DECREASE, NO EFFECT)
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