What is the impact of recording this writeoff on inventory

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Problem 1: Southford Inc. is considering writing off its obsolete inventory at the end of the year. The writeoff is part of a restructuring and will be included in a restructuring cost line on the income statement. What is the impact of recording this writeoff on the inventory turnover ratio and the current ratio?

a) The inventory turnover ratio will decrease and the current ratio will increase.
b) The inventory turnover ratio will increase and the current ratio will decrease.
c) The inventory turnover ratio will increase and the current ratio will increase.
d) The inventory turnover ratio will decrease and the current ratio will decrease.

Reference no: EM132907493

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