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Milo Ltd. and Lucy Ltd. are both involved in the sale of watches, but they seem to approach it differently according to the following
Milo Ltd. and Lucy Ltd. are both involved in the sale of watches, but they seem to approach it differently according to the following information: Ratio Milo Gross Margin 50% Inventory Turnover 50 days Average receivables collection period 90 days Lucy 30% 25 days 30 days Discuss three differences in approach (3 points) Discuss two limitations of financial ratio analysis (2 points)
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Differences in Approach 1 Gross Margin Milo Ltd has a higher gross margin of 50 compared to Lucy Ltds gross margin of 30 This indicates that Milo is a...Get Instant Access to Expert-Tailored Solutions
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Accounting and Finance An Introduction
Authors: Peter Atrill, Eddie McLaney
8th edition
129208829X, 1292088297, 978-1292088297
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