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Impact of inflation on ratios

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Reference no: EM133127474

IMPACT OF INFLATION ON RATIOS

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.

Reference no: EM133127474

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