Johnson, Inc. has a current ratio of 1.7. Thompson Industries has a current ratio of 2.2.Which of the following is true?

a.Johnson has less cash than Thompson.

b.Thompson has more inventory than Johnson.

c.Both of the above must be true.

d.Neither of the above necessarily is true.

Which of the following statements are true?

a.When comparing a company ratio to the industry average, a company ratio value that is equal to the industry average is not necessarily good.

b.A higher current ratio is always better than a lower one.

c.Trend analysis compares the firm to other same-industry firms.

d.All of the above are true.

Which of the following statements is true?

a.Increasing liquidity ratios are always indicative of improving firm health.

b.The average collection period can be too high or too low.

c.An increasing debt ratio is always indicative of declining firm health.

d.All of the above are true.

You have found the perfect burial plot.Of course, you do not plan to need it for at least 60 years.The plot costs $12,000 today and burial plots are increasing at 4% per year.How much do you need to deposit at the beginning of each of the next 60 years to pay for the plot if you can earn 11% on your deposit?

a.23.9

b.126,253.2

c.26.6

d.5,764.3