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The following presents the balance sheet for Firm K, along with information from the income statement. A competitor. Firm F. has a profit margin of

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The following presents the balance sheet for Firm K, along with information from the income statement. A competitor. Firm F. has a profit margin of 15%, an asset turnover ratio of 0.8, and an equity multipler of 3.33. Which statement below is false? Income Statement Information Revenue: 3,500 EBIT: 800 Net Income: 200 Total Assets: 2,000 O Current Assets: 600 . Cash: 100 Receivables: 200 Inventory: 300 o Noncurrent Assets: 1,400 Net PP&E: 1.100 Other NCA: 300 Total Liabilities: 1,500 o Current Liabilities: 700 Current Debt: 250 Payables: 300 Accruals: 150 o Noncurrent Liabilities: 800 Long Term Debt: 800 Total Equity: 500 O Common Stock 400 o Retained Earnings 100 O Firm K is likely more risky than Firm F. O Firm K's profit margin is on par with Firm F Firm Fuses its assets more efficiently than Firm K. O Firm K has an inflated ROE due to the amount of leverage it has

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