Ratio Current Assets/Current Liabilities Days sales Outstanding = Receivables/(Annual Sales/365) Sales/Inventory Sales/Fixed Assets Sales/Total…

If a company doubles its sales and its inventories, accounts receivables, and common equity during a year. How would that information affect the validity of your ratio analysis (Hint:think about averages, and the effects of rapid growth on rations if averages are not used. No calculations are needed)Note, ratios are in the attachment

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