FINC 600 Week 7 Practice Quiz APU | Page 2

7 . Given the following data :
Sales = 3200
Cost of goods sold = 1600
Average total assets = 1600
Average inventory = 200
Calculate the asset turnover ratio :
8 . Efficiency ratios indicate :
I ) How productively is the firm utilizing its assets .
II ) How liquid is the firm .
III ) How profitable is the firm .
IV ) How highly is the firm valued by investors .
9 .
Profitability ratios indicate :
I ) How productively is the firm utilizing its assets .
II ) How liquid is the firm .
III ) How profitable is the firm .
IV ) How highly is the firm valued by the investors .