d. Suppose Morton had doubled its sales as well as its inventories, accounts receivable, and common equity

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d. Suppose Morton had doubled its sales as well as its inventories, accounts receivable, and common equity during 2010. How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.)

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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