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Hero and Zero are both in the ice cream business. Hero uses a more conservative cash management policy than Zero. Zero ships product to distributors
Hero and Zero are both in the ice cream business. Hero uses a more conservative cash management policy than Zero. Zero ships product to distributors upon receiving the order. Hero ships product upon receipt of payment except for its best customers. Show all work. Balance Sheet (a) Fill out the Grid below; show all work Based on the information above, answer the following questions: (b) Which company has the higher ROA and which one has the higher ROE? Explain why (c)Do any of the ratios suggest there may be an issue (red or yellow flag -at least 5 but less than 15)? Why
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