Financial ratios of the most interest loan officer

Assignment Help Accounting Basics
Reference no: EM13146083

Bob meets next month with a banker to secure a 60 day line of credit. He asks Mark which financial ratios will be of the most interest to the loan officer. How should Mark respond, any why?

(A) The total debt ratio, times interest earned ratio, or cash coverage ratio to discover the company's amount of long term debt

(B) The inventory turnover, receivables turnover, or asset turnover ratio to judge the firm's ability to use convert assets to sales

(C) The profit margin ratio, ROA ratio, or ROE ratio to understand the profitability of the company

(D) The current ratio, quick ratio, or cash ratio to determine the firm's liquidity.

Reference no: EM13146083

Questions Cloud

Find mean amount spent per person per month by shoppers : Assume that this city has 1100 shoppers aged 12 to 14 years and 900 shoppers aged 15 to 17 years. Find the mean amount spent per person per month by shoppers aged 12 to 17 years in this city.
Write a letter of application based on stated requirements : Write a letter of application based on the stated requirements of the advertised job and present evidence of your ability to meet those requirements. Initially you can work independently of the rest of your group, but before your final submission..
What are the easiest microbial forms to kill or inhibit : Which of the microbial forms have the highest resistance to physical and chemical controls?
Find the expected freezing point of a water : Find the expected freezing point of a water solution that contains 268 g of aluminum nitrate, Al(NO3)3, in 8.50 kg of water.
Financial ratios of the most interest loan officer : Bob meets next month with a banker to secure a 60 day line of credit. He asks Mark which financial ratios will be of the most interest to the loan officer. How should Mark respond, any why?
What is the probability that sales for november will be less : What is the probability that his sales for November will be less than $100,000? Find the mean, variance, and standard deviation of the November sales.
Why does it make sense that the ask yield is reported : The asked yield is the investment yield corresponding to the dealer’s asked price. Why does it make sense that the ask yield is reported, rather than the bid yield? ?
Determine the amount of impairment loss : Estimated of total cash inflows (not discounted) from selling products made in California. $30,000,000. The fair value of the California plant is estimated to be $24,000,000. Determine the amount of impairment loss, if any.
Calculate the partial pressure (in atmospheres) of each gas : Assuming that the total pressure of the gases is 1.52 atm and that their mole ratio is 94 : 4.0 : 1.5 : 0.50, calculate the partial pressure (in atmospheres) of each gas.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What is the value of stock today

The dividend should grow rapidly - at a rate of 50% per year - during years 4 and 5, but after year 5, growth should be constant at 8% per year. If the required return on Microtech is 15%, what is the value of its stock today?

  Required rate of return for gamma limited

Gamma Ltd is not expecting to pay dividends for three years, at the end of year four, a dividend of $2.00 is planned and dividends are expected to be constant forever after that. The required rate of return for Gamma Ltd equity is 14% pa.

  Journal entries and accounting concepts

It is now July 31st. You are continuing to advise Dr. Leo Krusack on basic accounting procedures. His practice had the following transactions during July.

  Breakeven point in sales dollars for redex

The following monthly data are available for RedEx, which produces only one product that it sells for $84 each. Its unit variable costs are $28 and its total fixed expenses are $64,960. Sales during April totaled 1,600 units. (a) How much is the b..

  Accounts payable account-inventory purchase

Kristen Montana operates a retail clothing operation. She purchases all merchandise inventory on credit and uses a periodic inventory system. The accounts payable account is used for recording inventory purchases only; all other current liabilitie..

  Stock price of a foreign target to decrease

Which of the following would probably not cause the stock price of a foreign target to decrease?

  Convergence of us gaap and ifrs

Once the convergence of US GAAP and IFRS has been completed, should US companies restatement their financials for a better comparsion for prior years? Why/why not?

  What is the break-even point (bep)

What is the break-even point (BEP) and why is it important?  What is the Contribution Margin (CM) and why is it important?

  Depreciation period used by the lessee

For a leased asset under a lease that qualifies as a capital lease, the depreciation period used by the lessee must be:

  Non-deductible personal interest

Upon audit, the IRS disallowed the interest deduction, classifying it a non-deductible personal interest. Donald believes and has asked you to find support for the deduction.

  Report from the lease transaction

In its 2004 income statement, what amount of interest expense should Gonzalez report from this lease transaction?

  What account would be debited and credited

If you received the utility bill for $400 but the bill is not due until the 15th of the following month how would you journalize them? What account would be debited and what would be credited?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd