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Consider the following financial data for Smith Corp.: Statement of Financial Position as of December 3 1 , 2 0 2 5 Cash & equivalents
Consider the following financial data for Smith Corp.:
Statement of Financial Position as of December
Cash & equivalents
$
Accounts payable $
Receivables
Notes payable
Inventories
Accrued wages & taxes
Total current assets
$
Total current liabilities $
Longterm debt
Net fixed assets
Common equity
Total assets
$
Total liab. & equity $
Income Statement for
Industry Average Ratios
Sales revenue
$
Current ratio
Cost of sales
Quick ratio
Gross profit
$
Days sales outstanding
days
Operating expenses
COGSInventory
EBIT
$
Total asset turnover
Interest expense
Net profit margin
Pretax income
$
Return on assets
Income taxes
Return on equity
Net earnings
$
Debttocapital ratio
Compared to other firms in the same industry, Smith...
Group of answer choices
generates more profit per dollar of total assets.
is better able to meet its shortterm obligations.
uses more equity financing.
has a shorter average collection period for receivables.
has a higher profit margin.
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