Assume a Company Buys Inventory with Cash, Just Before Year

Multiple Choice

Assume a company buys inventory with cash, just before year end. Assume the inventory has not been sold before the end of the year. Which of the following statements is correct regarding the effect of buying the inventory?

A) Its current ratio will increase.
B) Its inventory turnover ratio will decrease.
C) Capital structure leverage will decrease.
D) Its return on assets will decrease.