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Question 4: (6 marks) Arthur Company fo lected information from the comparative financial statements o the year ended December 31, appears below 2015 Cash Short

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Question 4: (6 marks) Arthur Company fo lected information from the comparative financial statements o the year ended December 31, appears below 2015 Cash Short term Investment Accounts receivable (net) Inventory Prepaid expenses Total current assets Total assets Current liabilities Long-term debt $ 20,000 S 25,000 30,000 100,000 40,000 90,000 70,000 15,000 240,000 800,000 70,000 200,000 700,000 500,000 20,000 50,000 10,000 210,000 500,000 50,000 150,000 500,000 300,000 Net sales Cost of goods sold Interest expense 15,000 14,000 65,000 30,000 110,000 Income tax expense Net income Instructions: compute the following profitability ratios for the year 201 interpret The Asset turnover ratio The profit margin ratio. The Retun on Asset Ratio (ROA)

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