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Explain the role of profitability ratios. Why should net income be assessed relative to operating revenue, assets, and equity? Explain the role of current ratios.

Explain the role of profitability ratios. Why should net income be assessed relative to operating revenue, assets, and equity?

Explain the role of current ratios. Assuming days in accounts receivable are too high, why is this a problem, and what actions should managers take to reduce the number of outstanding days?

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