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Indicate whether each of the following statements about financial statement analysis is true or false: 1. Having too little inventory can hurt a company's profitability

Indicate whether each of the following statements about financial statement analysis is true or false:

1. Having too little inventory can hurt a company's profitability because of lost sales.

2. Having too much inventory can hurt a company's profitability because of excess costs

3. Average days to sell inventory is the number of times, on average, that inventory is replaced during the year.

4. Values for the inventory turnover ratio vary widely among different industries.

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