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( a ) Calculate the following ratios. 1 . Current ratio 6 . Gross profit rate 2 . Accounts receivable turnover 7 . Profit margin
a Calculate the following ratios.
Current ratio Gross profit rate
Accounts receivable turnover Profit margin
Inventory turnover Asset turnover
Debt to assets ratio Return on assets
Times interest earned Return on common stockholders' equity
b Comment on your findings from part a
c Based on your analysis in parts a and b do you think a bank would lend Cookie & Coffee Creations Inc. $ to buy the additional equipment? Explain your reasoning.
d What alternatives could Cookie & Coffee Creations Inc. consider instead of bank financing?
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