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Question 13 3 pts Ford has a times-interest-earned ratio of 4.8 times, and Toyota has a times-interest-earned ratio of 5.3 times. What conclusions would Ford's
Question 13 3 pts Ford has a times-interest-earned ratio of 4.8 times, and Toyota has a times-interest-earned ratio of 5.3 times. What conclusions would Ford's chief financial officer arrive at looking at these numbers and Toyota's ratio? The times-interest-earned ratio is of no interest to lenders because the ratios are so close together. Toyota is in a better position to cover its interest costs than Ford. A times-interest -earned ratio of 4.8 times is better than a times interest-eamed ratio of 5 3 times. None of these Ford is in a better position to pay interest than Toyota Question 14 3 pts A firm collects $20,000 cash on a sale that occurred 30 days ago. What is the effect of this transaction on the financial statements? Current assets (cash increase and current assets (A/R) decrease Current assets decrease and revenue decreases None of these Revenues increase and current liabilities increase There is no impact to the fancial statements
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