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Compute the values of the following ratios for General Motors Corporation, and compare the results to the industry values provided. Current ratio Return on
Compute the values of the following ratios for General Motors Corporation, and compare the results to the industry values provided. Current ratio Return on assets Days sales outstanding (DSO) Debt ratio P/E GM Values Industry Values 1.60 4.1% 10.6 days 64.0% 32.3 1. You must show your computations for each ratio. For example, the Current ratio is equal to (Current liabilities)/(Current assets). For this computation, you should insert the values for Current liabilities and Current assets and show the result of the computation. 2. To compute DSO, assume all GM's sales are on credit. 3. Briefly discuss (in a couple of sentences) how the values of GM's ratios compare to the industry values. Interpret what your comparison means.
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