What ratio is used to measure a firm's ability to pay its current liabilities and what does this ratio tell a manager? How can a low ratio be improved?
What will be an ideal response?
A firm's current ratio can be used to evaluate a firm's ability to pay its current liabilities. A firm's current ratio is computed by dividing current assets by current liabilities. The average current ratio for all industries is 2.0, but it varies greatly from industry to industry. A high current ratio indicates that a firm can pay its current liabilities. A low current ratio can be improved by repaying current liabilities, by reducing dividend payments to stockholders to increase the firm's cash balance, or by obtaining additional cash from investors.
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The distribution of cash, as the final process in winding up the affairs of a partnership, is based on the income-sharing ratio
a. True b. False Indicate whether the statement is true or false
Lightfoot, Inc, is an international shoe company that specializes in retailing medium-priced goods. Retail outlets are located throughout the world. Management wishes to create an image of giving the customer the most quality for the money spent
Selling prices are developed to attract customers away from competitors. End-of-the-month sales are a regular practice for all stores, with customers being accustomed to this practice. Company buyers are carefully trained and look for quality goods at lower prices. Competitors' prices are checked daily. Sales are targeted to increase a minimum of 7 percent per year. All sales yield a 12 percent return on assets. Sales personnel are expected to wear the company product, as well as appropriate clothing in order to properly display the product being sold. Personnel can purchase the shoes at 5 percent over cost. Cleanliness and professional appearance are required for all stores. Identify the pricing policy objectives of this company.
Although the presumed goal of a journalist is objectivity, pure objectivity is impossible
Indicate whether the statement is true or false
A beta coefficient for a risky stock is
A. less than 1.0. B. equal to 1.0. C. greater than 1.0. D. negative.