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The information below is excerpted from the financial statements of two companies active in the retail industry. Use this information and the proper financial ratio(s)
The information below is excerpted from the financial statements of two companies active in the retail industry. Use this information and the proper financial ratio(s) to answer the following questions. Show your calculations. You may (or may not) need to fill in missing information. Footnote: Approximately 98% of Company Y's account receivables are from unpaid balances carried by customers using the store credit card. 1. Which company is better positioned to pay its bills in the short-run (i.e., is more liquid and less risky in the short-term)? Justify using appropriate ratio(s). (10point) 2. Is one company significantly more profitable than the other? Justify using at least 2 appropriate ratio(s). (10 point) 3. Which company is more leveraged? Justify using appropriate ratio(s). (10 points)
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