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Ratio Analysis Use the Following Information to Complete the Balance

Question 131

Essay

Ratio Analysis Use the following information to complete the balance sheet below.
Current ratio = 3
Current liabilities = 5 million
Credit sales = 25 million
Average collection period = 30
Inventory turns = 8
Total asset turns = .75
Debt ratio = 45%

Correct Answer:

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Step 1: Current ratio = 3 times = Curren...

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