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Consider the following financial data for Fleishmann Industries: Balance Sheet as of December 3 1 , 2 0 2 3 Cash $ 5 3 ,

Consider the following financial data for Fleishmann Industries:
Balance Sheet as of December 31,2023
Cash
$
53,500
Accounts payable $
24,500
Accts. receivable
78,500
Short-term bank note
77,500
Inventories
53,000
Accrued wages & taxes
19,500
Total current assets
$
185,000
Total current liabilities $
121,500
Long-term debt
137,500
Net plant & equip.
453,500
Common equity
379,500
Total assets
$
638,500
Total liab. & equity $
638,500
Profit & Loss Statement for 2023
Industry Average Ratios
Sales
$
523,500
Current ratio
1.7
Cost of goods sold
319,500
Quick ratio
1.3
Gross profit
$
204,000
Days sales outstanding
48 days
Operating expenses
155,500
COGS/Inventory
8.3
EBIT
$
48,500
Total asset turnover
0.5
Interest expense
17,000
Net profit margin
10.9%
Pre-tax income
$
31,500
Return on assets
6.0%
Income taxes (25%)
7,875
Return on equity
10.0%
Net profit
$
23,625
Debt-to-capital ratio
26%
Compared to its peers, Fleishmann...
Group of answer choices
generates more profit per dollar of total assets.
is better able to meet its short-term obligations.
has higher total expenses per dollar of sales.
converts its receivables to cash more quickly.
obtains less of its capital from debt financing.

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