Analyze Take- Two’s 1998-2000 financial data included in Exhibit 1. Compute the following financial ratios for each of those years: age of accounts receivable, age of inventory, gross profit percentage, profit margin percentage, return on assets, return on equity, current ratio, debt- to- equity ratio, and the quality- of- earnings ratio. What major “red flags,” if any, were present in Take- Two’s financial statements given these ratios? Explain.
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