The days’ sales uncollected ratio is calculated by dividing accounts receivable by net sales and then multiplying by 365. a. True. b. False.
What is one key ratio that might be used to best assess a company? Or does it depend? Explain.
Closets, Closets, Closets Corp. has $1,200,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 9%. In addition, it has $700,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $6.45 million, its average tax rate is 25%, and its profit margin is 9.2%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answer to 2 decimal places for the final answers.
How does the interpretation of the asset turnover ratio and the financial leverage ratio change based on whether the profit margin ratio is positive or negative?
The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $503,000, what is the amount of current liabilities?
