Ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as:

market value ratios.

long-term solvency measures.

asset management ratios.

profitability ratios.

liquidity measures.

The Purple Martin has annual sales of $4,500, total debt of $1,240, total equity of $2,500, and a profit margin of 6 percent. What is the return on assets? 21.77 percent 7.22 percent 6.00 percent 10.80 percent 8.82 percent The debt-equity ratio is measured as:

total equity divided by long-term debt.

total equity divided by total debt.

total assets minus total debt,

divided by total equity.

long-term debt divided by total equity.

total debt divided by total equity.

The total asset turnover ratio measures the amount of:

net income generated by every $1 in total assets.

total assets needed for every $1 of sales.

fixed assets required for every $1 of sales.

net income than can be generated by every $1 of fixed assets.

sales generated by every $1 in total assets.

A firm has a total debt ratio of .47. This means the firm has 47 cents in debt for every:

$.53 in total equity.

$.53 in total assets.

$1 in total equity.

$1 in fixed assets.

$1 in current assets.

The receivables turnover ratio is measured as:

accounts receivable times sales.

accounts receivable divided by sales.

sales minus accounts receivable,

divided by sales.

sales divided by accounts receivable.

sales plus accounts receivable.