question archive Inflation can have significant effects on income statements and balance sheets, and therefore on the calculation of ratios
Inflation can have significant effects on income statements and balance sheets, and therefore on the calculation of ratios
Subject:ManagementPrice: Bought3
Inflation can have significant effects on income statements and balance sheets, and therefore on the calculation of ratios. Discuss the possible impact of inflation on the following ratios:
- Return on investment
- Inventory turnover
- Fixed asset turnover
- Debt-to-assets ratio
Also, explain the direction of the impact based on your assumptions.
