Identify the trouble spots that the ratio analysis

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Reference no: EM132044273

The below table provides a partial Ratio Analysis of Jim’s Appliance Shop. Identify the trouble spots that the ratio analysis suggests and provide some insights on how these trouble spots can be corrected (give some specific suggestions).

Ratio Jim’s Appliance Shop Industry Average

Current Ratio 1.70 1.88

Debt Ratio 0.70:1 0.73:1

Debt to Net Worth Ratio 2.70:1 2.60:1

Reference no: EM132044273

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