Over the past year, M.D. Ryngaert & Co. had an increase in its current ratio and a declinein its total assets turnover ratio. However, the company’s sales, cash and equivalents, DSO,and fixed assets turnover ratio remained constant. What balance sheet accounts must havechanged to produce the indicated changes?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
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Over the past year, M.D. Ryngaert & Co. had an increase in its current ratio and a decline
in its total assets turnover ratio. However, the company’s sales, cash and equivalents, DSO,
and fixed assets turnover ratio remained constant. What balance sheet accounts must have
changed to produce the indicated changes?

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