Answer: E) Cash
Explanation:
The Supplier should be most concerned with the Cash Ratio when granting credit. The Cash Ratio measures the amount of Cash in addition to the amount of Cash equivalent assets that the company has against it's current Liabilities in other to see if the company can be able to pay off it's Current Liabilities with it's current Cash and Cash Equivalents.
The Supplier will therefore be concerned with this ratio to see if the company is indeed able to pay back within 10 days before they can be able to grant credit.
Answer:
Explanation:
For Navy contract, the total number of man hours put into production will be:
= 27 × 40 × 2
= 2160 man hours
Then, the units produced per labor hour will be:
= 2540 devices / 2160
= 1.176 units per labor hour.
For Army contracts, the total number of man hours put into production will be:
= 37 × 40 × 3
= 4440 man hours
Then, the units produced per labor hour will be:
= 5940/4440
= 1.338 units per labor hour.
Answer:
quick ratio = 0.72
Explanation:
given data
sales = $200 million
inventory turnover ratio = 5.0
current assets totaled = $100 million
current ratio = 1.2
solution
we get here quick ratio so here
inventory turnover ratio =
...............1
put here value
inventory = 
inventory = 40
and
now we get current liability
current ratio =
...............2
put here value
current liability =
current liability = 83.33
and here quick ratio
quick ratio =
.............3
quick ratio =
quick ratio = 0.72
Answer:
Data for Question
<u>Debt</u> <u>Book Equity</u> <u>Market Equity</u> <u>Operating Income</u> <u>Interest Expense</u>
Firm A
500 300 400 100 50
Firm B
80 35 40 8 7
1.
Market debt-to-equity ratio = Debt of Firm / Market Equity
Firm A = 500 /400 = 1.25
Firm B = 80 / 40 = 2
2.
Book debt-to-equity ratio = Debt of Firm / Book Equity
Firm A = 500 /300 = 1.67
Firm B = 80 / 35 = 2.29
3.
Interest coverage ratio = Operating Income / Interest Expense
Firm A = 100 /50 = 2
Firm B = 8 / 7 = 1.14
4.
Firm B will have more difficulty meeting its debt obligations because it has higher debt equity ratio and lower interest coverage ratio than Firm A.