EXERCISE 81 1. Which of the following situations best correspond with a ratio of sales to average
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EXERCISE 8–1 1. Which of the following situations best correspond with a ratio of “sales to average net tangible assets”
exceeding the industry norm? (Choose one answer.)
a. A company expanding plant and equipment during the past three years.
b. A company inefficiently using its assets.
c. A company with a large proportion of aged plant and equipment.
d. A company using straight-line depreciation.
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