THIS INFORMATION IS FOR THE QUESTIONS ON THIS PAGE OF THE QUIZ The following are ratios for two companies: ABC Co. XYZ Co. Inventory turnover 11.7 12.3 Debt to assets 0.70 0.63 Return on assets 10.2% 7.9% Current ratio 2.4 1.8 Profit margin 8.3% 8.1% Ratio formulas: Inventory turnover = (cost of goods sold / average inventory) Debt to assets ratio = (total liabilities/total assets) Return on assets = (net income / average total assets) Current ratio = (current assets / current liabilities) Profit margin = (net income / net sales) Which company is slower at selling its inventory? Select one: ABC Co. XYZ Co. Cannot tell with any of the ratios given What ratio(s) indicate ABC is more solvent than XYZ? Select all that apply. Select one or more: Inventory turnover Debt to assets ratio Return on assets Current ratio Profit margin None of the ratios indicate ABC is more solvent than XYZ What ratio(s) indicate ABC is more profitable than XYZ? Select all that apply. Select one or more: Inventory turnover Debt to assets ratio Return on assets Current ratio Profit margin None of the ratios indicate ABC is more profitable than XYZ What ratio(s) indicate ABC is more liquid than XYZ? Select all that apply. Select one or more: Inventory turnover Debt to assets ratio Return on assets Current ratio Profit margin None of the ratios indicate ABC is more liquid than XYZ