Uranus08

ro424 Wrote:
-------------------------------------------------------
> Chuck are you looking at the Secret Sauce? I think
> it's either wrong on not properly worded as to
> what it's displaying.
>
> P. 86 in Schweser book 2 outlines pretty clearly
> that Current Ratio (and all IS and BS pure ratios)
> are the same under Current Rate method.
>
> The secret sauce chart on p. 64 doesn't look right
> either, they also show Gross Profit Margin as
> being different under Current Rate method when
> this is a pure IS ratio. I think the chart maybe
> showing the effects of the methods vs. each other
> as opposed to original ratios.
>
> Anyone with some clarity on this?

Yeah, Secret Sauce. It has to be wrong or worded incorrectly relative to changes in CA/CL under the temporal method.