You Are Provided This Information About a Retail Store Called

question 32

Multiple Choice

You are provided this information about a retail store called "BoardSports:" BoardSports Industry Mean
Current Ratio 1.5 : 1 2: 1
Quick Ratio .75 : 1 1 : 1
Debt Ratio 0.87 : 1 0.75 : 1
Average Collection Ratio 46 days 33 days
Net Profit on Sales Ratio 5.5% 8.2%
Net Profit to Equity Ratio 7.7% 13.2%
What can you reasonably assess about the current financial status of this company?

• A)The company is in excellent financial condition with no changes required.
• B)The company is in respectable financial condition with no changes required.
• C)The company is in questionable financial condition with minor changes required.
• D)The company is in poor financial condition with significant changes required.

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Definitions:

Channels

in communication refer to the mediums through which information is transmitted from one entity to another, such as verbal, non-verbal, written, and digital modes.

Messages

Information or communication sent from one person or entity to another, through various means such as speech, writing, or symbols.

Sender

The individual or entity initiating a communication process by conveying a message to a receiver.

DineEquity

A parent company that owns and operates popular restaurant chains, known for its commitment to quality dining experiences and customer service.