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1. Make up a numerical example where both the top and bottom of a fraction go either up or down but the value of the whole fraction decreases.

2. Make up a numerical example where the common-size value for inventories is 7.32 %. (Do not use 100 as the denominator)

3. Make up a numerical example where the common-size value for COGS is 43.78 %. (Do not use 100 as the denominator)

4. For which of the financial ratios on our formula sheet do we want the value to be at least 1.0?

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