What would be a reason for not computing the quick ratio?

A. A company had a zero inventory balance during the year

B. A company has obsolete inventory

C. A company has damaged inventory

D. A company is a manufacturing company instead of a retail company

Which ratio is direct indicator of how much of a return that shareholders receive on their investment dollars?

	A.	the net profit margin
	B.	the return on assets
	C.	the return on equity
	D.	the total debt to total capital ratio

A current ratio of 0.78 means that a company.....

	A.	would have a hard time retiring their five year bonds that were issued just two months ago
	B.	probably could not finance a new building that it needed
	C.	would have a hard time selling its inventory
	D.	would have a hard time meeting payroll

What does it mean for a company to have a gross profit margin of 0.42 and sales of $1,000,000

	A.	IIt's operating expenses is approximately $420,000
	B.	Its net profit margin is approximately $580,000
	C.	Its EBIT is approximately $580,000
	D.	Its cost of sales is approximately $580,000

Jameson Corporation wants to evaluate if it is a good sales booster to purchase a new manufacturing facility . They need to calculate the....

	A.	Debt to total assets
	B.	Fixed asset turnover
	C.	Total asset turnover
	D.	Return on assets