Question
Gardial & Son has an ROA of 11%, a 2% profit margin, and a return on equity equal to 19%. Do not round intermediate calculations.
Gardial & Son has an ROA of 11%, a 2% profit margin, and a return on equity equal to 19%. Do not round intermediate calculations. Round your answers to two decimal places.
What is the company's total assets turnover?
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What is the firm's equity multiplier?
________
Current and Quick Ratios
The Nelson Company has $1,175,000 in current assets and $470,000 in current liabilities. Its initial inventory level is $305,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.0? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.
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