The following selected information is available for Danier Leather Inc. for three fiscal years (in thousands): Instructions

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The following selected information is available for Danier Leather Inc. for three fiscal years (in thousands):

The following selected information is available for Danier Leather Inc.

Instructions
(a) Calculate the current ratio, gross profit margin, and profit margin for each year.
(b) Comment on whether the ratios have improved or deteriorated over the three years.
(c) Compare the 2010 ratios calculated in (a) with the following industry averages: current ratio 3.4:1; gross profit margin 49.2%; and profit margin 9.8%. Are Danier Leather's ratios better or worse than those of its industry?

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118024492

5th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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