You have just restated a set of financial statements to reflect impairing goodwill for a company that has no impairment charges in the last 10 years. Now you are going to perform the financial analysis. Which of the following statements is absolutely correct when comparing the as-stated and re-stated financials?
a. The Asset Turnover ratio will increase on a restated basis for all relevant years.
b. The Current Ratio will decrease in the first year of the restatements as compared to as-stated.
c. The Gross profit margin must always be smaller for the restated ratios.
d. The Debt Service Margin be smaller on a restated basis