Current ratio is stated as a crude ratio because O a. None of these O b. It measures only the quality of current assets O c. Offerings dimension Od. Both a and b Oe. It measures only the quantity of current assets
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- Return on Assets, or ROA, can be expressed as the product of two ratios. Which two? Select one: a. Sales Turnover and Total Asset Turnover b. None of the options are correct c. Net income and total assets d. Profit margin and Total Asset Turnover e. Net Profit Margin and Fixed Asset turnoverc. Return on assetsd. Current ratioe. Receivables turnover Please answer questions C,D and E and please provide an explanation of the result, this part is crucial to the questionWhich of the following is the correct formula for calculating rate of return on total assets? A. (Net income minus− Interest expense) / Average total asset B. Total equity / Total assets C. (Net income + Interest expense) / Average total assets D. (Net income minus− Interest expense) / Total assets
- Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. A fixed asset is sold for less than book value.Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. A fixed asset is sold for more than book value.Perform the calculation for each ratio, and provide an explanation of the result. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
- A current ratio of less than one means current assets are less than current liabilities. Select one: O True O FalseDefine these. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnoverWhich should be subtracted from the net income when using the indirectmethod? A. Loss on sale of investmentB. Amortization of patentC. Increase in accounts receivableD. Increase in accounts payable
- a. Current ratiob. Inventory Turnover ratioc. Accounts receivable ratiod. Fixed asset turnover ratioe. Net profit marginf. Return of assets (ROA)g. Return of equity (ROE)Requirements: Compute for the following: a. Adjusted Current Assets b. Adjusted Noncurrent Assets c. Adjusted Liabilities d. Adjusted Equity e. Adjusted ProfitAnswer the following question a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
