8. Given the following ratiós for three companies rank in order Co A, B,C which is the most liquid, solvent, and profitable. Current ratio Debt to equity Times interest earned Return on assets .11 Return on equity 14 Answer: Co A 4:1 .37 4 Liquidity Solvency Profitability best, best, best, Co B 3.8:1 .15 3 .08 .12 middle middle middle Co C 1.9:1 .13 2 .06 .07 least least least I

8. Given the following ratiós for three companies rank in order Co A, B,C which is the most liquid, solvent, and profitable. Current ratio Debt to equity Times interest earned Return on assets .11 Return on equity 14 Answer: Co A 4:1 .37 4 Liquidity Solvency Profitability best, best, best, Co B 3.8:1 .15 3 .08 .12 middle middle middle Co C 1.9:1 .13 2 .06 .07 least least least I

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 33CE: Liquidity Ratios NWAs financial statements contain the following information: Note: Round answers to...

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