The debt equity ratio of a company is 1:1 state giving reasons, which of the following would improve, reduce or not change the ratio (i)Purchase, of machinery for cash (ii)Purchase of goods on credit (iii) Sale of furniture at cost (iv)Sale of goods at a profit (v)Redemption of debentures at a premium

Which of the following liabilities should always be included in the debt calculations for a firm? a. accounts payableb. commercial paperc. deferred revenued. deferred tax liabilities

Which of the following ratios best measures the profitability of a company?    a) Return on equity b) Gross margin c) Current ratio d) Net operating asset turnover

Match the following terms or phrases in (a–g) with the explanations in 1–8. Terms or phrases may be used more than once.   Question 11 options:   Current assets/Current liabilities   Probable likelihood and estimable liability   Measures the “instant” debt-paying ability of a company   Current assets – Current liabilities   (Cash + Temporary investments + Accounts receivable)/Current liabilities   Cash + Temporary investments + Accounts receivable   Probable likelihood of a liability but cannot be estimated     Remote contingent liability   Reasonably possible likelihood of a liability   1. Current ratio 2. Working capital 3. Quick assets 4. Quick ratio 5. Record an accrual and disclose in the notes to the financial statements 6. Disclose only in notes to financial statements 7. No disclosure needed in notes to financial statements

Assume the following relationships for the Brown Corporation:                        Sales / Assets                                           1.5Return on assets (ROA)                            3%Return on equity (ROE)                            5% Calculate the firm’s profit margin and debt-to-assets ratio, assuming the company uses debt and common equity.

Required: (a) You are required to calculate the following ratios:(i) Gross profit margin(ii) Operating profit margin(iii) Expenses to sales(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover  (b) In light of your calculations comment on the performance of the company over thelast two years.

What is Return to Equity? Interest paid on debt Revenue minus Costs Only Retained Earnings All of the Above

Match each definition that follows with the term (a–h) it defines.   Question 7 options:   a company's ability to make interest payments and repay debt at maturity   focuses on a company’s ability to generate net income   useful for comparing one company to another or to industry averages   use debt to increase the return on an investment   measures the risk that interest payments will not be made if earnings decrease   the percentage analysis of the relationship of each component in a financial statement to a total within the statement   a percentage analysis of increases and decreases in related items on comparative financial statements   an analysis of a company’s ability to pay its current liabilities   1. solvency 2. leverage 3. times interest earned 4. horizontal analysis 5. vertical analysis 6. common-sized financial statements 7. current position analysis 8.…

I’m trying to do the debt to equity ratio. I understand that is total liabilities divided by stockholders equity. What would be my liability for the equation? Accounts receivable Inventory Net sales Cost of goods sold Total assets Total stockholders equity Net income 

What are two ratios indicating how well the company manages its debt ?.