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You have correctly calculated the following ratios for Groceries 'R' Us Ltd. (GRU), a large independent grocery store: Quick ratio: Inventory turnover: Debt to

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You have correctly calculated the following ratios for Groceries 'R' Us Ltd. ("GRU"), a large independent grocery store: Quick ratio: Inventory turnover: Debt to equity: Profit margin: 1.25 to 1 12 times 2 to 1 (debt total liabilities) 10% Required: Use the table below to indicate the impact of each of the following independent transactions on each of GRU's ratios. Follow these instructions: 1) Copy and paste the below table in your response file 2) Replace each "?" in the table with one of: UP-to indicate the ratio will increase DOWN-to indicate the ratio will decrease SAME-to indicate the ratio will stay the same NO TABLE-NO MARKS. Transaction GRU buys inventory for $1,000 from its supplier on credit and immediately sells it" to a customer for $1,100 in cash. GRU borrows $1M from the bank, with $100K repayable annually over 10 years. Interest at 5% is paid every month. Due to a power outage, GRU's entire stock of frozen shrimp is spoiled and must be thrown away as a result. I Quick Ratio Inventory Turnover Debt to Equity 1.25 to 1 12 times 2 to 1 Profit Margin 10% 2 ? 9

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