The table below shows the ratios for two companies. Unfortunately, the accounts clerk who computed the ratios made an error and is now unsure of the identities of the two companies. Possible candidates are: a bubble tea company, a sporting shoe and apparel retailer, and a heavy equipment manufacturer. Interpret the ratios in the table above to identify the two (2) companies and briefly discuss one (1) reason in the following format: The bubble tea company is likely to be company 1 /2 / none of them (choose one (1)). Reason: The sporting shoe and apparel retailer is likely to be company 1 /2 / none of them (choose one (1)). Reason: The heavy equipment manufacturer is likely to be company 1 /2 / none of them (choose one (1)). Reason:
The table below shows the ratios for two companies. Unfortunately, the accounts clerk who computed the ratios made an error and is now unsure of the identities of the two companies. Possible candidates are: a bubble tea company, a sporting shoe and apparel retailer, and a heavy equipment manufacturer. Interpret the ratios in the table above to identify the two (2) companies and briefly discuss one (1) reason in the following format: The bubble tea company is likely to be company 1 /2 / none of them (choose one (1)). Reason: The sporting shoe and apparel retailer is likely to be company 1 /2 / none of them (choose one (1)). Reason: The heavy equipment manufacturer is likely to be company 1 /2 / none of them (choose one (1)). Reason:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The table below shows the ratios for two companies. Unfortunately, the accounts clerk who computed the ratios made an error and is now unsure of the identities of the two companies. Possible candidates are: a bubble tea company, a sporting shoe and apparel retailer, and a heavy equipment manufacturer.
Interpret the ratios in the table above to identify the two (2) companies and briefly discuss one (1) reason in the following format:
The bubble tea company is likely to be company 1 /2 / none of them (choose one (1)).
Reason:
The sporting shoe and apparel retailer is likely to be company 1 /2 / none of them (choose one (1)).
Reason:
The heavy equipment manufacturer is likely to be company 1 /2 / none of them (choose one (1)).
Reason:
Transcribed Image Text:COMPANY
1
2
Debt-equity
0.1
0.3
Inventory Turnover
60.0
15.0
Current Ratio
0.5
0.9
Sales/Total Assets
15.0
8.0
Sales/Receivables
90.0
60.6
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