If you are a supplier that requires payment of the amount due in 2 weeks, which financial ratio of your customer would you look at before extending your credit?

Select one:

a. Cash coverage ratio

b. Quick ratio

c. Total debt ratio

d. Current ratio

e. Cash ratio

2.

Given the following information, calculate the net income. Fixed asset turnover ratio = 4, Profit margin = 20%, Net fixed asset = $25,000

Select one:

a. $22,000

b. $20,000

c. $24,000

d. $16,000

e. $18,000

3.A supplier that provides trade credits to a company would be interested in the company's ___________ratio.

Select one:

a. Profitability ratio

b. Liquidity ratio

c. Financial leverage ratio

d. Market value ratio

e. Asset utilization turnover ratio