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Hello. I need help with the following problems. I would appreciate any help. Water Works, Inc. has current asset components as follows: Cash $3,578 Accounts
Hello. I need help with the following problems. I would appreciate any help.
Water Works, Inc. has current asset components as follows: Cash $3,578 Accounts receivable $4,397 Inventories $7,767 Assume Water Works, Inc. has current liabilities of $5.620. What is Water Works, Inc.'s quick ratio? Please round your answer to the second decimal. E.g. 1.23 QUESTION 3 You plan to evaluate two companies' financial performance and therefore you collected the following information: Company A Company B Company Net Profit Margin 0.020 0.015 Total Asset Turnover 1.85 2.00 Equity Multiplier 2.2 3.00 Which of the following statement is CORRECT? OA. A Company generates higher level of net income out of sales than B Company does. OB. A Company has higher level of return on equity (ROE) than B Company does. OC. A Company is more efficient in utilizing its assets to make sales than B Company. OD. A Company has higher proportion of liabilities out of total assets than B Company does. Which of the following statement is true? A. As a general rule, management would want to reduce the firm's account receivable days. B. As a general rule, management would want to reduce the firm's return on equity. C. As a general rule, management would want to reduce the firm's current ratio. D. As a general rule, management would want to reduce the firm's net profit marginStep by Step Solution
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