The following information is available for Tim Hortons Inc. and Starbucks Corporation, and their industry, for a

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The following information is available for Tim Hortons Inc. and Starbucks Corporation, and their industry, for a recent year:

Instructions
(a) Comment on the liquidity of the two companies in comparison with each other, and the industry.
(b) Comment on the profitability of the two companies in comparison with each other, and the industry.

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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Question Posted: Jan 11, 2017 10:06 AM

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The following information is available for Tim Hortons Inc. and Starbucks Corporation, and their industry, for a

Question:

Tim Hortons Starbucks Industry Average Inventory turnover Current ratio Gross profit margin Profit margin 24.4 times 1.2:1 376% 10.4% 16.1 1.3:1 11 .996 18.3% 5.3 times 1.9:1 56.3% 10.4%

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a Both companies have current ratios that exceed the industry average and therefore enjoy greater li...View the full answer

Financial Accounting Tools for Business Decision Making

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