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Significant effects on income statements and balance sheets

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Reference no: EM132892951

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: EM132892951

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