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The change in inventory value was created purely by accounting and exchange rate factors, because the subsidiary still has the same inventory and assets in
The change in inventory value was created purely by accounting and exchange rate factors, because the subsidiary still has the same inventory and assets in place. However, this change would affect Streep's consolidated financial statements and ratios. Assuming no other changes occurred, what effect would this have on Streep's quick ratio?
a. The quick ratio does not change.
b. The quick ratio increases with inventory value.
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