Which Combination of Ratios Will Best Analyze Stetson's Income Statement

question 44

Multiple Choice

Which combination of ratios will best analyze Stetson's income statement performance?

• A)Earnings per share,gross profit,and profit margin ratio
• B)Gross profit ratio,return on common stockholders' equity ratio,debt-to-equity ratio
• C)Debt-to-equity ratio,gross profit ratio,and profit margin ratio
• D)Current ratio,gross profit ratio,and return on common stockholders' equity ratio

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Definitions:

Sole Proprietorship

A business structure where an individual owner operates the company and is personally responsible for its debts.

Personally Responsible

Taking ownership and accountability for one's actions and duties, being reliable in fulfilling obligations and commitments.

Injuries

Physical harm or damage to the body caused by accidents, falls, hits, weapons, or other external forces.

Federally Registered

A status indicating that a business, trademark, or other item has been officially recorded and recognized by a national government.