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The following financial ratios are for Average Corp. and Superior Corp., two hardware stores.

Which of the following statements is inconsistent with the above ratios?

a) Superior Corp has a higher return on equity primarily because it has a significantly higher net income margin

b) Average Corp. on a relative basis uses significantly more debt financing than Superior Corp.

c) Average Corp. utilizes its assets more effectively than Superior Corp.

d) Superior Corp. generates more income per dollar of sales than Average Corp.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M941226

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