Why does an increase in the ratio of current assets to total assets decrease both profits and

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Why does an increase in the ratio of current assets to total assets decrease both profits and risk as measured by net working capital? How do changes in the ratio of current liabilities to total assets affect profitability and risk? Discuss.

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Principles of managerial finance

ISBN: 978-0132479547

12th edition

Authors: Lawrence J Gitman, Chad J Zutter

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Question Posted: Jan 16, 2013 03:29 AM

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Why does an increase in the ratio of current assets to total assets decrease both profits and

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If a firm increases the ratio of currenttototal assets it will have a larger proportion of current a...View the full answer

Principles of managerial finance

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