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3. Which of the following ratios provides a solvency measure and also gives an indication of the potential ability of the business to borrow additional

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3. Which of the following ratios provides a solvency measure and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis? a. working capital b. current ratio c. debt to total assets d. asset turnover ratio $29,000 20,000 5,000 27,000 4. Using the following selected accounts: Current assets $ 8.000 Revenues Current liabilities bilities 4,000 Expenses Average assets 40,000 Total liabilities Total assets 30,000 Stockholders' equity Average common shares outstanding was 10,000. What is the earnings per share? a. $2.70 b. $3.00 C. $.50 d. $.90 Page 1 of 10

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