The following lists a number of ratios against the average for the ratio over the prior three

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The following lists a number of ratios against the average for the ratio over the prior three years. For each, indicate whether the ratio suggests that return on net operating assets will be higher or lower in the followingyear.

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Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

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Question Posted: Mar 17, 2012 06:44 AM

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The following lists a number of ratios against the average for the ratio over the prior three

Question:

Current Levl Average, Prior Three Years 2.34 percent 3.59 percent 7.34 0.23 1.3 0.9 Ratio 8ad debt expense Sales Waranty expense/Sales Net salesAccounts receivable IrnventorySales Depreciation/Capital expenditure 4.12 percent 2.30 percent 5.88 0.12 1.5 0.25 Deferred revenue/SaleS

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Bad debt expenseSales lower ratio suggests lower RNOA in the future Warranty expe...View the full answer

Financial statements

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