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Selected Financial Ratios for Opus Company and Its Industry Averages

Question 28

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Selected financial ratios for Opus Company and its industry averages are given. What does the information suggest about Opus?
 Opus Company  Industry Average  Inventory turnover 1.82.0 Accounts receivable turnover 1.952.3 Rate of return on total assets 15.616.5 Rate of return on net sales 2.42.2\begin{array}{lcr} & \text { Opus Company } & \text { Industry Average } \\\text { Inventory turnover } & 1.8 & 2.0 \\\text { Accounts receivable turnover } & 1.95 & 2.3 \\\text { Rate of return on total assets } & 15.6 & 16.5 \\\text { Rate of return on net sales } & 2.4 & 2.2\end{array}

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Opus is well able to pay its debts when ...

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