You have obtained the following information for Blue Bell Farms. The tax rate is 34 percent. Cash $ 124 Net fixed assets 2,498 Accrued expenses 135 Inventory 1,027 Long-term debt 1,876 Sales 3,850 Costs 2,220 Accounts payable 486 Depreciation 321 Interest paid 136 Accounts receivable 518 Dividends paid 281 What is the quick ratio? Group of answer choices a) 0.96 times b) 0.82 times c) 1.26 times d) 1.03 times e) 1.08 times
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
You have obtained the following information for Blue Bell Farms. The tax rate is 34 percent.
Cash $ 124
Net fixed assets 2,498
Accrued expenses 135
Inventory 1,027
Long-term debt 1,876
Sales 3,850
Costs 2,220
Accounts payable 486
Interest paid 136
Accounts receivable 518
Dividends paid 281
What is the quick ratio?
Group of answer choices
a) 0.96 times
b) 0.82 times
c) 1.26 times
d) 1.03 times
e) 1.08 times
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