Average collection period and the average payment period

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Reference no: EM13944986

You know the following. ATO, ITO and FATO are 2, 6, and 2.5 respectively while for the industry they are 4.4, 19 and 4 respectively. The current ratio and quick ratio are 1 and 1.5 for the firm and 2.3 and 2.0 for the industry respectively. Net profit margin is 1% and 5% respectively. The ROE is 2% and 10% respectively. The average collection period and the average payment period are 10 and 45 days respectively while for the industry they are 30 and 30 respectively. Evaluate the firm. SHOW WORK AND FORMULA STEP BY STEP

Reference no: EM13944986

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