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Given the financial statements for Jones Corporation and Smith Corporation shown here: a . To which one would you, as credit manager for a supplier,

Given the financial statements for Jones Corporation and Smith Corporation shown here:

.

To which one would you, as credit manager for a supplier, approve the extension of

(

short

-

term

)

trade credit? Why?

.

In which one would you buy stock? Why?

Hint: Compute profitability ratios, asset utilization ratios, solvency and liquidity ratios

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