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Imagine the firm has decreased its cash holdings and purchased equipment (cash on the balance sheet has gone down; fixed assets has gone up) and
Imagine the firm has decreased its cash holdings and purchased equipment (cash on the balance sheet has gone down; fixed assets has gone up) and liquidity, measured by the firm's current ratio, has decreased, which of the following ratios is likely to decrease?
A. Cash ratio
B. Cash coverage ratio
C. current asset turnover
D. total asset turnover
E. profit margin
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