How does purchase of goods for cash affect the operating ratio? Will it increase if it was 60% before? Share with your friends Share 0 Monika Sharma answered this It will lead to increase in operating ratio as purchases is a part of Cost of Goods Sold. to Shrivathsan. -3 View Full Answer Shrivathsan V answered this Purchase of goods, irrespective whether bought for cash or on credit, increases cost of goods sold. Hence, operating ratio will increase. 4 Simran K answered this The answer in the book is given to be no change and that's why I was wondering how? 3