Profits might be compared with assets, sales, and stockholders equity. Why might all three bases be used?
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Question:
Profits might be compared with assets, sales, and stockholders’ equity. Why might all three bases be used? Will trends in these ratios always move in the same direction? Why?
Compute the ratios for an actual company. Did the ratios move in the same direction from one year to the next?
Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
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