Posted: June 15th, 2022
Turnover ratios differ from the current and quick ratios in that they
Turnover ratios differ from the current and quick ratios in that they01a. Are based on a point in time rather than a periodof time.b. Measure the efficiency with which a company uses itsassets.c. Are based on net sales instead ofcash.d. Measure the profitability of a company instead of itsliquidity.$460,00 $320,00Current Liabilities00Long-Term Liabilities240,000 640,000Stockholders’ Equity840,000Net Cash Flows fromOperating Activities160,000 102,000Interest and PrincipalPayments24,0001,080,00016,000Net Sales950,000 900,000Net Income180,000 144,000Interest Expense17,00023,000Income Taxes32,00029,000Dividends Paid to CommonStockholders30,00060,000Refer to Rio Imports. The times interest earned ratio for 201501a. Decreased, which indicates that the company has less cash to pay interest on its debt.b. Indicates that the company cannot meet its current year interest payments out of current year earnings.c. Indicates a decline in the company’s ability to pay its liabilities when they come due.d. Increased, which indicates that the company’s creditors will be pleased.
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