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Given the following information: Debt-to-net worth ratio 2.87 Times-interest-earned Average payable period 86 days 41 days Average inventory turnover 8.4 times/year Which of the following

Given the following information: Debt-to-net worth ratio 2.87 Times-interest-earned Average payable period 86 days 41 days Average inventory turnover 8.4 times/year Which of the following statements is true? 0.6 The Muktuk ShopIndustry Mediar 1.32 1.8 12.1 times/year OA. If the Muktuk Shop could lower its average inventory turnover ratio, it could achieve its current level of sales with a smaller investment in inventory. OB. Inventory appears to be moving through the Muktuk shop very quickly and does not sit on store shelves for very long. OC. The Muktuk Shop appears to have sufficient borrowing capacity. OD. The Muktuk Shop is likely to have trouble getting trade credit from its suppliers

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