I. Inventory includes raw materials, finished goods and work-in-progress II. Inventory is a part of the working capital III. Inventory includes goods likely to be purchased  

Activity ratios show where the company is going Balance sheet ratios show how the company stand.    

Reason (R): Accounting information is presented in financial statements.  

i. Increase in current assets ii. Decrease in current assets iii. Increase in current liabilities iv. Decrease in current liabilities