9 simple accounting questions Financial Ratios

1)

A company's current ratio decreased from 3 last year to 2 this year. One of the reasons is likely to be:

Select one:

a.Lower gross margin percentages

b.Inventory is not selling as quickly

c.Used cash to buy long-term assets

d.Slower collection of accounts receivables

2)Use the chart below as a reference

(in thousands 2016 2015 Shareholders' Equity 535,479 535,587 Preferred Equity $10,000 $10,000 Common Shares 750.2 777.9 outstanding The book value per share for 2016 isCurrent Assets $2,000 Long-Term Assets 5,000 Current Liabilities 1,000 Long-Term Liabilities 4,000 Using the above figures, the working capital isA company's financial statements show the following numbers: 2016 2015 Assets 3,000 2 000 Liabilities 2,000 1,000 Sales Revenue 9,000 10,000 Expenses 8,400 5,200 The asset turnover for 2016isUsing horizontal analysis an me alumna table. we an determine that