Question: Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector. Required: State, with reasons, which of the

Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector.

Required:
State, with reasons, which of the above is:
(a) A holiday tour operator
(b) A supermarket chain
(c) A food manufacturer.

A Co. 3.6% 2.4 times B Co. 9.7% 3.1 times C Co. 6.8% 1.7 times Ratio Operating profit margin Sales revenue to capital employed Inventory turnover period Collection period for receivables Current ratio 18 days 2 days 0.8 times n/a 12 days 0.6 times 44 days 26 days 1.5 times

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