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QUESTION 6 Which of the following statements is CORRECT? a . A reduction in the inventory turnover ratio will generally lead to an increase in

QUESTION 6
Which of the following statements is CORRECT?
a. A reduction in the inventory turnover ratio will generally lead to an increase in the ROE.
b. If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.
c. An increase in inventories will have no effect on the current ratio.
d. If a firm increases its sales while holding its inventories constant, then, other things held constant, its fixed assets tumover ratio will decline.
e. A reduction in inventories will have no effect on the current ratio.
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