A. When the company sells inventory at a profit, current assets will increase. This is because the receivable that is created is larger than the inventory that was sold (the difference is the profit on the transaction). This increase in current assets will increase the current ratio.

B. Writing off a receivable will decrease both the receivables account and the related allowance for bad debts. Therefore, net receivables will remain unchanged and the current ratio will remain unchanged.

C. When a company purchases inventory on account, both the current assets and the current liabilities of the company will increase by the cost of the inventory. Since the company currently has a current ratio of 2, an equal increase in the numerator and denominator will actually decrease the current ratio of the company because the percentage increase in current assets will be less than the percentage increase in current liabilities.

D. A distribution of a stock dividend does not affect current assets or current liabilities because it is distributed in stock, not cash. Therefore, the current ratio would remain unchanged.