What problems may be indicated by an average collection

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1. What are the primary limitations of ratio analysis as a technique of financial statement analysis?

2. What problems may be indicated by an average collection period that is substantially above or below the industry average?

3. What problems may be indicated by an inventory turnover ratio that is substantially above or below the industry average?

4. Discuss the general factors that influence the quality of a company's reported earnings and its balance sheet.

Reference no: EM13616383

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