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Are the following ratios best classified as profitability ratios?Ratio #1 – Cash plus short-term marketable investments plus receivables divided by average daily cash expenditures. Ratio #2 – Earnings before interest and taxes divided by average total assets. A. Both of the ratios are profitability ratios. B. Neither of the ratios is a profitability ratio. C. Only one of the ratios is a profitability ratio. |