Mindy and Lou Had Total Liquid Assets of $10,000 and Total

question 72

Multiple Choice

Mindy and Lou had total liquid assets of $10,000 and total current debts of $30,000.What is their liquidity ratio?

• A)25%
• B)33%
• C)67%
• D)150%
• E)300%

---

Definitions:

Average Sale Period

The average time it takes for a business to convert its inventory into sales, indicating the efficiency of inventory management.

Debt-to-equity Ratio

Debt-to-equity Ratio is a financial metric that compares a company’s total liabilities to its shareholder equity.

Return on Equity

An indicator of a company's financial success, showing the amount of profit generated from the investments made by its shareholders.

Net Profit Margin

A financial performance metric that shows the percentage of net income derived from revenue.