What is the firm cash to current liabilities ratio

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Reference no: EM133108545

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Q1. A firm's total assets are $8,000,000, its total liabilities are $3,000,000, its current assets are $1,700,000 ($400,000 cash, $200,000 money market fund, $700,000 inventory, $200,000 receivables, and $200,000 stocks), its current liabilities are $1,100,000 ($500,000 accounts payable, $600,000 notes payable), and its equity $5,000,000. What is the firm's cash to current liabilities ratio?

A. 0.727

B. 0.364

C. 1.333

D. 0.545.

Q2. Tech Manufacturing Company realized $15,000,000 in sales, with a cost of goods sold of $6,000,000, and operating expenses of $4,500,000. Their operating profit margin would be:

A. 70%.

B. 30%.

C. 60%.

D. 50%.

Q3. Which of the following ratios would not be useful to evaluate a company's operating efficiency?

A. Equity turnover

B. Total asset turnover

C. Quick ratio

D. Fixed asset turnover

Reference no: EM133108545

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