The financial statements and industry norms are shown below for the Congo Mining Company: a. Compute the

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The financial statements and industry norms are shown below for the Congo Mining Company:

a. Compute the financial ratios for Congo to compare both for 2017 and 2018 against the industry norms.

b. How liquid is the firm?

c. Are its managers generating an adequate operating profit on the firm’s assets?

d. How is the firm financing its assets?

e. Are its managers generating a good return on equity?

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Foundations Of Finance

ISBN: 9781292318738

10th Global Edition

Authors: Arthur Keown, John Martin, J. Petty

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Question Posted: Apr 13, 2024 12:01 AM

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The financial statements and industry norms are shown below for the Congo Mining Company: a. Compute the

Question:

Current ratio Acid-test (quick) ratio Inventory turnover INDUSTRY NORM 5.10 3.20 2.40 Average collection period 88.00 Debt ratio 0.35 Times interest earned 7.15 Total asset turnover Fixed-asset turnover Operating profit margin Return on common equity 0.78 1.10 23% 11%

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Foundations Of Finance

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