Question: Below are selected ratios for three years ending March 31 for the Worst Company Ltd: Outline possible explanations for the drastic changes in some of

Below are selected ratios for three years ending March 31 for the Worst Company Ltd: Ratios Current ratio Acid-test ratio Debt-asset ratio Operating expenses ratio Number of

Outline possible explanations for the drastic changes in some of the ratios during these years.

Ratios Current ratio Acid-test ratio Debt-asset ratio Operating expenses ratio Number of times interest earned Stock turnover Debtors turnover Rate of return on total assets Year 1 200 110 15 24 6 5 12 15 Year 2 500 320 40 25 6 4 10 10 Year 3 150 80 55 32 3 6 5

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