What probability ratios can be drawn


Selected data from the Carmen Company at year's end are presented below:

  • Total Sales $2,000,000
  • Average total assets 2,200,000
  • Net income 250,000
  • Net Sales 1,300,000
  • Average common stockholders' equity 1,000,000
  • Net Cash provided by operation activities 275,000
  • Shares of common stock outstanding 10,000

what probability ratios can be drawn from this?If you are to advise your client to invest in Carmen Company, what can you show him/her to demonstrate that the company is profitable or not profitable?

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Accounting Basics: What probability ratios can be drawn
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