From the Following Information Taken from the Records of Peach

question 175

Multiple Choice

From the following information taken from the records of Peach Company at December 31 of this year, calculate equity.

• A) $1,500
• B) $2,500
• C) $7,500
• D) $3,500
• E) $6,000

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Definitions:

Days' Sales Uncollected

A financial metric used to determine the average number of days it takes for a company to collect revenue after a sale has been made.

Profit Margin Ratio

A financial metric that measures the percentage of profit a company makes for each dollar of sales, indicating the efficiency of the company in managing its operations.

Gross Margin Ratio

A financial metric expressing the difference between sales and the cost of goods sold as a percentage of sales.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.