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Which ratios would be best suited to answer the following questions? If you believe that more than one answer is appropriate, choose the best answer.
Which ratios would be best suited to answer the following questions? If you believe that more than one answer is appropriate, choose the best answer. Question How many days on average are receivables outstanding? For each dollar invested by common shareholders, how much was earned as profit? Is the company able to make interest payments as they come due? Is the company able to cover its current liabilities with its current assets? Ratio Average collection period Current ratlo How much income is generated for every dollar in sales? How much of net income is paid out as cash dividends? How much cash is available from operating activities to be used for discretionary purposes? How much net income was earned for the year that is realized on each common share? Payout ratio Basic earnings per share
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