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Your company had the following balance sheet and income statement information for 2 0 2 0 : Balance sheet: Cash A / R $ 2
Your company had the following balance sheet and income statement information for : Balance sheet: Cash AR $ Inventories Total CA $ Debt $ Net FA Equity Total Assets $ Total claims $ Income statement: Sales $ Cost of goods sold EBIT $ Interest EBT $ Taxes Net Income $ The industry average inventory turnover is You think you can change your inventory control system so as to cause your turnover to equal the industry average, and this change is expected to have no effect on either sales or cost of goods sold. The cash generated from reducing inventories will be used to buy taxexempt securities which have a percent rate of return. What will your profit margin be after the change in inventories is reflected in the income statement? a b c d e
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