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    Fundamental Accounting Principles

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    Which ratios should be used to help answer the following
    questions?
    (a) How efficient is a company in using its assets to produce
    sales?
    (b) How near to sale is the inventory on hand?
    (c) How many dollars of net income were earned for
    each dollar invested by the owners?
    (d) How able is a company to meet interest charges as
    they fall due?

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    https://brainmass.com/business/business-math/fundamental-accounting-principles-14396

    Solution Preview

    Hi there,
    <br>
    <br>a) Return on assets ratio
    <br>
    <br>Net income + after tax interest expense / average ...

    Solution Summary

    This question involves the fundamentals of accounting

    $2.19

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