1. Current Ratio 5.3 7.08 2. Acid Test Ratio 5.1 6.8 3. Gross Profit Ratio 30% 40%
1. Current Ratio 5.3 7.08 2. Acid Test Ratio 5.1 6.8 3. Gross Profit Ratio 30% 40%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Industry
Ratios
Ratio
GnG Ratios
1. Current Ratio
5.3
7.08
2. Acid Test Ratio
5.1
6.8
3. Gross Profit Ratio
30%
40%
4. Net Income Margin
7.5%
18.2%
5. Receivable Turnover Ratio
14.41
6. Return on Asset Ratio
12%
9.29%
7. Debt to Asset Ratio
1:4
LA 1
Interpretation and verbal analysis compared to industry ratios:
Liquidity
1.
2.
Profitability
3.
Solvency](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bd78cdd-3fe9-4047-ae44-a68b3b6fb342%2F7c90f059-5ab3-4903-8a4d-2320bade57b2%2Frl2q9zb_processed.png&w=3840&q=75)
Transcribed Image Text:Industry
Ratios
Ratio
GnG Ratios
1. Current Ratio
5.3
7.08
2. Acid Test Ratio
5.1
6.8
3. Gross Profit Ratio
30%
40%
4. Net Income Margin
7.5%
18.2%
5. Receivable Turnover Ratio
14.41
6. Return on Asset Ratio
12%
9.29%
7. Debt to Asset Ratio
1:4
LA 1
Interpretation and verbal analysis compared to industry ratios:
Liquidity
1.
2.
Profitability
3.
Solvency
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