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Need help with these two questions please asap...... Thanks Turnover ratios differ from the current and quick ratios in that they 0 1 a. Are
Need help with these two questions please asap...... Thanks
Turnover ratios differ from the current and quick ratios in that they 0 1 a. Are based on a point in time rather than a period of time. b. Measure the efficiency with which a company uses its assets. c. Are based on net sales instead of cash. d. Measure the profitability of a company instead of its liquidity. $460,00 $320,00 Current Liabilities 0 0 Long-Term Liabilities 240,000 640,000 Stockholders' Equity 840,000 Net Cash Flows from Operating Activities 160,000 102,000 Interest and Principal Payments 24,000 1,080,0 00 16,000 Net Sales 950,000 900,000 Net Income 180,000 144,000 Interest Expense 17,000 23,000 Income Taxes 32,000 29,000 Dividends Paid to Common Stockholders 30,000 60,000 Refer to Rio Imports. The times interest earned ratio for 2015 0 1 a. Decreased, which indicates that the company has less cash to pay interest on its debt. b. Indicates that the company cannot meet its current year interest payments out of current year earnings. c. Indicates a decline in the company's ability to pay its liabilities when they come due. d. Increased, which indicates that the company's creditors will be pleasedStep by Step Solution
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