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Two companies are in direct competition in the sports apparel industry, Lopez International and Rodriguez Corporation. The ratios as computed for each company's most recent

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Two companies are in direct competition in the sports apparel industry, Lopez International and Rodriguez Corporation. The ratios as computed for each company's most recent fiscal year are below. Use this information to answer the questions that follow. Lopez International Rodriguez Corporation 11.2 30.6 9800 Times Interest Earned Average Collection Period (in days) Free Cash Flow (in millions) Debt to Assets Ratio Return on Assets Profit Margin Current Ratio Return on Equity Inventory Turnover 6.4 42.1 8600 66 8.6 4.8 1.63 21.3 6.6 58 5.6 3.5 0.87 17.6 9.1 2) a) The current ratio is used to evaluate a company's (liquidity, solvency, profitability)? b) Which company's current ratio is better? 3) a) Which company has stronger profitabilty? b) How did you make that determination

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