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1. What is false about ratio analysis? you can look for trends and patterns over the years b a. company can be compared to its

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1. What is false about ratio analysis? you can look for trends and patterns over the years b a. company can be compared to its industry relationship between two numbers can be seen d. the absolute size of the dollar amounts is the focus C. a 2. One way to increase the current ratio is by: collecting cash on accounts receivable b. buying equipment with cash selling inventory for cash d. issuing common stock for cash a. C. 3. If a company were to buy some inventory and pay cash for it, the debt ratio would: increase a. b. decrease stay the same d. cannot say C. 4. Total liabilities and stockholders' equity = $1,000. The debt ratio is 55.5%. What is the debt-to-equity ratio? 100.0% a. b. 45.5% 124.7% C. d. 155.5%

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