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Scroll down to complete all parts of this task. The table below presents some ratios that were considered significant by an auditor in the current

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Scroll down to complete all parts of this task. The table below presents some ratios that were considered significant by an auditor in the current and prior year's audits of a client. Select from the option list provided the most likely explanation for the analytical results. Each choice may be used once, more than once, or not at all. Ratio Year 2 Year 1 Explanation 1.99 4.61 41% 1. Debt to equity 2. Gross profit percentage 3. Quick 4. Inventory turnover 5. Return on equity 38% 2.00 1.50 3.25 4.50 3% 8% Select an option below O Sales decreased compared with the prior year. O Cost of goods sold increased during the year at a lower rate than sales increased. O Proceeds from the issuance of noncurrent debt were used to pay accounts payable. O Capital stock was issued during the year. RESET CANCEL ACCEPT Select an option below accounts payable. O Capital stock was issued during the year. O The entity may have accumulated excess and obsolete inventory. O Inventory deceased by more than cost of goods sold decreased for the year. O Cost of goods sold decreased by less than sales decreased during the year. ACCEPT CANCEL RESET

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