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Inflation can have significant effects on income statements and balance sheets, and therefore on the calculation of ratios. Discuss the possible impact of inflation on
- Inflation can have significant effects on income statements and balance sheets, and therefore on the calculation of ratios. Discuss the possible impact of inflation on the following ratios, and explain the direction of the impact based on your assumptions.
- Return on investment
- Inventory turnover
- Fixed asset turnover
- Debt-to-assets ratio
Block, S.B., Hirt, G.A. & Danielsen, B.R. (2019). Foundations of Financial Management (7e). New York, NY: McGrew Hill Education. page 76
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100 Day Money Saving Challenge
Authors: Clubby Parrot
1st Edition
B0CN9F4XBJ
