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Which of the following ratios falls under the Market Value Ratios Category? Quick Ratio Days Sales Outstanding Price to Cash Flow Ratio Debt Ratio You

Which of the following ratios falls under the Market Value Ratios Category?

Quick Ratio

Days Sales Outstanding

Price to Cash Flow Ratio

Debt Ratio

You are trying to find the most efficient way to manage your working capital. Your supplier is deciding between offering you terms of 2/10 net 60 or 2/10 net 30. You calculate that the effective annual cost of 2/10 net 60 is 15.9% and the effective annual cost of 2/10 net 30 is 44.6%. You have a line of credit available at the bank with a rate of 14.5%. Which of the following is true?

  • If your supplier offers you 2/10 net 60, you will access your line of credit to pay the supplier early and take the discount.

  • You will not access your line of credit to pay your supplier early and take the discount under any terms.

  • If your supplier offers you 2/10 net 30, you will access your line of credit to pay the supplier early and take the discount.

  • Under both possible terms, You will access your line of credit to pay your supplier early and take the discount.

Kraft Heinz reported the following financial information for the year 2021; Net Income of $1,500; Return on Assets of 1.0%; Return on Equity of 2.5%. What was Kraft Heinz's reported Total Liabilities for 2021?

80,000

90,000

70,000

100,000

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