The debt to assets ratio measures the percentage of the total assets provided by creditors
Question 19
A company whose current liabilities exceed its current assets may have a liquidity problem . Question 20
During 2014 , Phelps Corporation reported net sales of $ 3,000,000 , net income of $ 1,320,000 , and depreciation expense of $ 80,000 . Phelps also reported beginning total assets of $ 1,000,000 , ending total assets of $ 1,500,000 , plant assets of $ 800,000 , and accumulated depreciation of $ 500,000 . Phelps ‘ s asset turnover ratio is
Final Part 2 Question 1
A manager of a cost center is evaluated mainly on Question 2
Bogey Co . recorded operating data for its Cheap division for the year . Bogey requires its return to be 10 %.
Sales |
$ 1,400,000 |
Controllable margin |
160,000 |
Total average assets |
4,000,000 |
Fixed costs |
100,000 |
What is the ROI for the year ? Question 3
Ratios are used as tools in financial analysis Question 4