Question
Assume Nike has a debt ratio of 50% in the prior year and a debt ratio of 20% in the current year. Which of the
Assume Nike has a debt ratio of 50% in the prior year and a debt ratio of 20% in the current year. Which of the following statements is true?
Nike was more profitable in the prior year
Nike has a better ability to pay long-term debt in the prior year
The percentage of assets financed with debt is higher in the prior year
The percentage of assets financed with debt is higher in the current year
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International Accounting A User Perspective
Authors: Suadagaran, Shahrokh M, Smith Lawrence Murphy
5th Edition
1531018661, 9781531018665
