A decrease in the ratio of liabilities to stockholders' equity indicates an improvement in the margin of safety for creditors
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The idea that the work process should be under the control of workers with the relevant knowledge, rather than that of managers, who should act as facilitators, was developed by
A. Lillian Gilbreth. B. Mary Parker Follet. C. Max Weber. D. Hugo Munsterberg. E. Elton Mayo.
What are four major categories of costs? Provide descriptions for each category
What will be an ideal response?
Which of the following is LEAST likely to have a very large number of possible customers?
a. banks on busy streets b. movie theaters c. theme parks d. the number of patients assigned to a nurse in the gynecology ward of a hospital
A firm has arranged for a lockbox system to reduce collection time of accounts receivable. Currently the firm has an average collection period of 43 days, an average age of inventory of 50 days, and an average payment period of 10 days
The lockbox system will reduce the average collection period by 3 days by reducing processing, mail, and clearing float. The firm has total annual outlays of $15,000,000 and currently pays 9 percent for its financing.(Assume a 360-day year.) (a) Calculate the cash conversion cycle before and after the lockbox system. (b) Calculate the savings in financing costs from the lockbox system.