1) New Company reported Operating cash flow to Current Liabilities ratios of 2.82 in 2018 and 3.04 in 2017. Which of the following statements are incorrect?

Group of answer choices

a. New Company had $2.82 in current liabilities for every $ of cash flow from operations in 2018.

b. New Company's ability to meet its current liabilities deteriorated in 2018.

c. New Company is less liquid in 2018.

2) During 2020, J Company reported an Operating Funds Ratio of 1.6, and P Company reported an Operating Funds Ratio of 1.097. What does this ratio communicate? Indicate all answers that are correct.

Group of answer choices

a. P Company is generating more operating cash flows.

b. J Compnay is doing a better job of converting its earnings into cash flows.

c. P Company is doing a better job of converting its earnings into cash flows.

d. J Company is generating more operating cash flow.

3) In its most recent 10-K, Ambassador Inc. reported the following (in millions):

Total liabilities

$8,172.0

Total stockholders' equity

$4,815.6

The percentage of Ambassador's total assets financed by owner sources is closest to:

Group of answer choices

a. 62.9%.

b. 41.1%.

c. 37.1%.

Answer rating: 100% (QA)

Q1 New Company reported Operating cash flow to Current Liabilities ratios of 282 in 2018 and 304 in ... View the full answer