If Current Assets Are $90,000, Property and Equipment Is $120,000

question 48

Multiple Choice

If Current Assets are $90,000, Property and Equipment is $120,000, Current Liabilities are $24,000, and Long-Term Liabilities are $106,000, the current ratio is

• A)3.75 to 1.
• B)1.13 to 1.
• C)0.85 to 1.
• D)5 to 1.
• E)8.75 to 1.

Recognize the key financial ratios used to measure liquidity, profitability, and leverage.

Distinguish between the uses of different financial ratios in evaluating company performance.

Appreciate the impact of treasury stock transactions on financial ratios.

Comprehend the significance of financial analysis beyond the mechanical computation of ratios.

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Definitions:

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