Answer:
The option B is a correct answer which is useful in assessing the liquidity position of a company.
Explanation:
Defensive Interval Ratio :
The defensive interval ratio (DIR) is that ratio which measures that by how many days can company operate without fixed assets or non current assets.
It is a type of liquidity ratio which shows that company can pay its current obligations without impacting long term obligations. It is always display in days.
Return on Stockholders' equity :
The return on stockholder equity is a profitability ratio which represents how much the company is earning profit during a particular period.
Liquidity ratio:
The liquidity ratio is that ratio which shows the relationship between current assets and current liabilities. It describes that how the company can meet its short term obligations with its available current assets.
Thus, by above explanation it is clear that the option B is a correct answer which is useful in assessing the liquidity position of a company.
B
I hope this helps have a very great day
Answer:
times-interest-earned ratio will be 3
So option (a) will be correct answer
Explanation:
We have given total sales = $400000
Operating expenses = $362500
And interest charges = $12500
So earning before interest and taxes = sales - operating cost = $400000 - $362500 = $37500
We have to find the times-interest-earned ratio
So times-interest-earned ratio is given by
times-interest-earned ratio = 
So option (A) will be correct option
Answer:
The answer is "$1,800".
Explanation:
Given value:
Solution:
At this revenue pace (900 units), the net operating income is going to be $1,800.
<u>Calculation of retained earnings beginning balance:</u>
Retained earning beginning balance can be calculated using the following formula:
Retained earnings ending balance = Retained earning beginning balance + Revenue – Expenses - Dividends
Hence using the given information we can solve the equation as follows:
3,050 = Retained earning beginning balance + 1935 – 1065 - 550
3,050 = Retained earnings beginning balance +320
Retained earnings beginning balance = 3050-320 = $2,730
Hence, Retained earnings beginning balance is <u>$2,730</u>
