33. Given the following information, which company is the most liquid? 34. Which...
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33. Given the following information, which company is the most liquid? ● ● ● 34. Which of the following statements about ratios is true? Managers prefer a high activity ratio. Creditors prefer a high debt to equity ratio. a. b. Hillside hotel: Current Ratio = 2.9; Asset Turnover = 1.5; Debt/Equity Ratio = 1.3 Okie hotel: Current Ratio = 2.4; Asset Turnover = 2.2; Debt/Equity Ratio = 1.8 Metro inn: Current Ratio = 0.8; Asset Turnover = 3.1; Debt/Equity Ratio = 2.1 George hotel: Current Ratio = 1.2; Asset Turnover = 0.5; Debt/Equity Ratio = 0.7 Red inn: Current Ratio = 1.5; Asset Turnover = 3.2; Debt/Equity Ratio = 2.8 a. Hillside hotel b. Okie hotel c. Metro inn d. George hotel e. Redd inn C. Owners and suppliers prefer a low profitability ratio. Owners prefer a low operating ratio. d. e. Managers always prefer a low liquidity ratio. d 33. Given the following information, which company is the most liquid? ● ● ● 34. Which of the following statements about ratios is true? Managers prefer a high activity ratio. Creditors prefer a high debt to equity ratio. a. b. Hillside hotel: Current Ratio = 2.9; Asset Turnover = 1.5; Debt/Equity Ratio = 1.3 Okie hotel: Current Ratio = 2.4; Asset Turnover = 2.2; Debt/Equity Ratio = 1.8 Metro inn: Current Ratio = 0.8; Asset Turnover = 3.1; Debt/Equity Ratio = 2.1 George hotel: Current Ratio = 1.2; Asset Turnover = 0.5; Debt/Equity Ratio = 0.7 Red inn: Current Ratio = 1.5; Asset Turnover = 3.2; Debt/Equity Ratio = 2.8 a. Hillside hotel b. Okie hotel c. Metro inn d. George hotel e. Redd inn C. Owners and suppliers prefer a low profitability ratio. Owners prefer a low operating ratio. d. e. Managers always prefer a low liquidity ratio. d
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Answer is a Hillside hotel Explanation Liquid ratio is indicated by current ratio A higher curren... View the full answer
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Project Management A Managerial Approach
ISBN: 978-0470533024
8th edition
Authors: Jack R. Meredith, Samuel J. Mantel Jr.
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