Calculate the following 2010 financial ratios of Aggie Corporation using the information given in Table 4-7:

i. current ratio
ii. acid test ratio
iii. debt ratio
iv. return on total assets
v. return on common equity

What will be an ideal response?


i. Current ratio = $48/$28 = 1.71
ii. Acid Test ratio = $22/$28 = 0.79
iii. Debt ratio = $46/$108 = 0.426
iv. Return on total assets = $28/$108 = 0.259
v. Return on Common Equity = $28/$62 = 0.45

Business

You might also like to view...

The claims of common and preferred stockholders on the assets of a firm take preference over those of the creditors in the event of default on a contractual obligation.

Answer the following statement true (T) or false (F)

Business

______ is considered the most significant factor in holding both women and minorities back from being promoted to top-level positions.

a. Training b. Education c. Discrimination d. Immigration

Business

The attention to sustainability issues in recent years has?

a. Decreased b. Increased c. Neither decreased nor increased d. It is impossible to know how attention to sustainability has changed

Business

The person who decodes a message in the communication process is called the:

A. target B. audience C. channel D. receiver E. recipient

Business