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Problem: Consider the following financial data for McGregor Manufacturing: Compared to other firms in the same industry, McGregor. a. uses less debt financing. b. has a longer average collection period for accounts receivable. c. has a lower return on assets. d. has lower short-term liquidity ratios. e. keeps a relatively high percentage of its sales as profit.

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Problem Details

Consider the following financial data for McGregor Manufacturing:

Compared to other firms in the same industry, McGregor.

a. uses less debt financing.

b. has a longer average collection period for accounts receivable.

c. has a lower return on assets.

d. has lower short-term liquidity ratios.

e. keeps a relatively high percentage of its sales as profit.

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Based on our data, we think this problem is relevant for Professor Sykes' class at UH.