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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Name: 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
Transcribed Image Text:Name: 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
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