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Refer to the following information for Smith's office supply and the industry mean respectively. Current ratio of 2.3, mean 1.8, Quick ratio 0.4, mean 0.8,
Refer to the following information for Smith's office supply and the industry mean respectively. Current ratio of 2.3, mean 1.8, Quick ratio 0.4, mean 0.8, average inventory turnover 2.0, mean 3.9, net sales to working capital 4.0, mean 7.8, Debt to net worth ratio 3.0 mean 1.7, net profit to equity ratio of 40.1 percent, mean 22.2%. Which of the following statements is most likely false ? a) Smith prices may be too high and/or the inventory too stale b) Smith Sales are inadequate c) Smith is sufficiently capitalized d) Smith relies heavily on inventory to meet its debt obligation
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