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Ratio Analysis - Explain how the following ratios are calculated and what the ratio indicates Include how these ratios provide useful information related to accounting
Ratio Analysis - Explain how the following ratios are calculated and what the ratio indicates Include how these ratios provide useful information related to accounting decision making topics such as efficiency (collecting amounts owed to the firm, using the assets well, getting items to market, etc.), liquidity (ability to pay current debts), solvency (ability to pay long term or all debts), etc. Please look at all the ratios not just these. a. Asset Turnover b. Return on Assets c. Current Ratio d. Accounts Receivable Turnover e. Average Collection Period f. Debt Ratio g. Days' sales in Inventory h. Gross Profit Percentage i. Return on Sales Ratio
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