Question
You are evaluating the solvency of TockTick Company. Which of the following would you use? Select all that apply. Asset turnover ratio: (net sales /
You are evaluating the solvency of TockTick Company. Which of the following would you use? Select all that apply.
Asset turnover ratio: (net sales / average total assets)
Inventory turnover: (cost of goods sold / average inventory)
Accounts receivable turnover: (net sales / average accounts receivable)
Times interest earned ratio: ((net income + interest expense + income tax expense) / interest expense)
Current ratio: (current assets / current liabilities)
Return on common stockholders' equity: ((net income - preferred stock dividends) / average common stockholders' equity)
Debt to total assets ratio: (total liabilities / total assets)
Gross profit rate: (gross profit / net sales)
Profit margin: (net income / net sales)
Return on assets ratio: (net income / average total assets)
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