When the underlying circumstances are favorable

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Reference no: EM131317012

Consider each of the following situations independently of each other. For each of the situations, provide one example of when the underlying circumstances may be such that the observed trend is unfavorable, and one example of when the underlying circumstances are favorable.

a. Current ratio increases from one period to the next

b. Accounts receivable turnover increases from one period to the next

Reference no: EM131317012

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