Questions Q: What is the debt to assets ratio for Alpha for year 3? Q: What is
Question:
Questions
Q: What is the debt to assets ratio for Alpha for year 3?
Q: What is the times interest earned ratio for Beta for year 2?
Q: What is the gross profit rate for Alpha for year 1?
Q:What is the net profit margin ratio for Beta for year 3?
Q: What is the return on assets ratio for Alpha for year 3?
Q: Which company would you rather sell inventory to (if sold on account)? Briefly explain.
Q: Which company would you rather extend a long-term loan to? Briefly explain.
Q: Which company would you rather invest in? Briefly explain.
For the below questions, answer with Improve, Worsen, or No impact
Q: If Alpha purchased $1,500 of equipment on account in year 3, how would that transaction impact its current ratio?
Q: If Alpha purchased $1,500 of equipment on account in year 3, how would that transaction impact its debt to assets ratio?
Q: If Alpha purchased $1,500 of equipment on account in year 3, how would that transaction impact its return on assets ratio?
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott