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After providing the credit department with your analyses. The chief officer provides you with the industry averages. How does this impact your internal finance
After providing the credit department with your analyses. The chief officer provides you with the industry averages. How does this impact your internal finance sources? Show all relevant calculations. INDUSTRY AVERAGES LIQUIDITY RATIOS CURRENT RATIO QUICK RATIO ACTIVITY RATIOS INVENTORY TURNOVER AVG COLLECTION PERIOD (Days) AVG PAYMENT PERIOD (Days) FIXED-ASSET TURNOVER TOTAL ASSET TURNOVER PROFITABILITY RATIOS RETURN ON TOTAL ASSET RETURN ON NET WORTH PROFIT MARGIN ON SALES LEVERAGE RATIO DEBT RATIO 2.00 1.25 7.00 35.0 45.0 7.0 2.5 0.05 0.10 0.02 0.65
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The industry averages provide a benchmark for the company to compare their financial performance By comparing the companys liquidity ratios activity ratios profitability ratios and leverage ratios to ...Get Instant Access to Expert-Tailored Solutions
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