7. The debt to assets ratio measures a. the company's profitability. b. whether interest can be paid on debt in the current year. c. the proportion of interest paid relative to dividends paid. d. the percentage of the total assets provided by creditors. The asset turnover measures 8. 9 a. how often a company replaces its assets. b. how efficiently a company uses its assets to generate sales. C. the portion of the assets that have been financed by creditors. d. the overall rate of return on assets. A liquidity ratio measures the a. income or operating success of an enterprise over a period of time. b. ability of the enterprise to survive over a long period of time. c. short-term ability of the enterprise to pay its maturing obligations and to meet unexpected needs for cash. d. number of times interest is earned. A successful grocery store would probably have 10. . a. a low inventory turnover. b. a high inventory turnover. C. zero profit margin. d. low volume. Junebag Corporation reported net income $36,000; net sales $400,000; and average assets $600,000 for 2014. What is the 2014 profit margin? 11. a. 9%