medium · Principles of Finance financial-statements-markets-wc

An analyst is evaluating the 'Quick Ratio' ([Cash + Marketable Securities + Receivables]/CL) after a 15,000,000 inventory write-down (tax rate 20%).

What is the impact on this ratio?

  1. The ratio remains unchanged
  2. The ratio decreases
  3. The ratio drops to zero
  4. The ratio increases

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