The debt to assets ratio

a. is a solvency ratio.

b. is computed by dividing total assets by total debt.

c. measures the total assets provided by stockholders.

d. is a profitability ratio.

The acid-test (quick) ratio

Group of answer choices

a. is used to quickly determine a company's solvency and long-term debt paying ability.

b. relates cash, short-term investments, and net receivables to current liabilities.

c. is calculated by taking one item from the income statement and one item from the balance sheet.

d. is the same as the current ratio except it is rounded to the nearest whole percent.

The following financial statement information is available for James Corporation:

___________________________ 2020 ________________ 2019

Net sales $780,000 $697,000

Cost of goods sold 406,000 377,000

Net income 120,000 80,000

Tax expense 48,000 29,000

Interest expense 14,000 14,000

The profit margin for 2020 is

a. 15.4%.

b. 47.9%.

c. 32.1%.

d. 13.5%.

The internal rate of return is the interest rate that results in a

a. positive NPV.

b. negative NPV.

c. zero NPV.

d. positive or negative NPV.