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    Cornerstones of Financial Accounting Study Set 3
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    Exam 12: Financial Statement Analysis
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    A Company Sold Inventory on Credit
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A Company Sold Inventory on Credit

Question 134

Question 134

Multiple Choice

A company sold inventory on credit. Its gross profit percentage is 23%. The effect of this transaction is that the


A) current ratio was unchanged.
B) earnings per share increased.
C) working capital decreased.
D) debt-to-equity ratio increased.

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