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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

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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 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... blur-text-image

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