Homework Answers
Answer: Company A is paying suppliers at a faster rate than Company B.
The accounts payable turnover ratio, also known as the payables turnover is a ratio that measures the average number of times a company pays its creditors over the accounting period. A high ratio indicates prompt payment is being made to suppliers for credit purchases.
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Company A has a higher Accounts Payable Turnover Ratio than Company B. Which of the following...
Which of the following is not an asset management ratio? A days sales outstanding ratio A...
Which of the following is not an asset management ratio? A days sales outstanding ratio A fixed asset turnover ratio A price-earnings ratio The average collection period Nikola Motors has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets of $85,000; and total current liabilities of $29,750. In its most recent annual report, Nikola reported annual sales of $100,000 and a cost of goods sold equal to 65% of annual sales. How...
You observe the following information regarding Company A and Company B: Company A has a higher...
You observe the following information regarding Company A and Company B: Company A has a higher expected return than Company B. Company A has a lower standard deviation of returns than Company B. Company A has a higher beta than Company B. Given this information, which of the following statements is CORRECT? a. Company A has more company-specific risk than Company B. b. Company A has a higher Sharpe ratio than Company B. c. Company A has a higher coefficient...
Company A has a total asset turnover of 2. Company B has a total asset turnover...
Company A has a total asset turnover of 2. Company B has a total asset turnover of 1.5. Which company will have the better return on assets? Select one: a. Company A, because the turnover is higher. b. Cannot be determined from the information given. c. Company B because the turnover is higher. d. Neither company; an asset turnover less than 3 produces an ROA of zero.
QUESTION 21 Hulkster Company has a receivables turnover ratio of 5.00 for the year 2020. Which...
QUESTION 21 Hulkster Company has a receivables turnover ratio of 5.00 for the year 2020. Which of the O Investors may wish to see Hulkster decrease this ratio because a lower turnover como All of these statement are true. Extending more lenient credit terms to customers will decrease the receivables turnover to be sales. O Hulkster's average accounts receivable balance was collected 5 times during the year. QUESTION 22 the statement of cash flows, operating cash outflows would include: purchases...
PART A The accounts receivable turnover ratio Multiple Choice is not useful in determining changes in...
PART A The accounts receivable turnover ratio Multiple Choice is not useful in determining changes in customer payment patterns. is computed using net credit sales and ending accounts receivable. is computed using net credit sales and average accounts receivable. uses total sales and not just credit sales in the computation. PART B Which of the following is not correct with respect to the debt to assets ratio? Multiple Choice The percentage of long-term debt to assets would be higher for...
A country is likely to have a higher sacrifice ratio if A. contracts are longer, and...
A country is likely to have a higher sacrifice ratio if A. contracts are longer, and people believe the central bank will not reduce inflation B. contracts are longer, and people believe the central bank will reduce inflation. C. contracts are shorter, and people believe the central bank will reduce inflation. D. contracts are shorter, and people believe the central bank will not reduce inflation. Monetary Policy in Mokania Mokania has had inflation of 15% for many years. Mokania establishes...
15. Company A has a cash ratio of 0.25 and Company B has a cash ratio...
15. Company A has a cash ratio of 0.25 and Company B has a cash ratio of 0.72. Also, company A's stock is traded at an average daily volume of 100 million shares and with a bid-ask spread of 1 cent. Company B's stock is traded at an average daily volume of 5 million shares and with a bid-ask spread of 5 cents. Which of the following is most likely to be true? A) Company A is stock is more...
You observe the following information regarding Company A and Company B: • Company A has a...
You observe the following information regarding Company A and Company B: • Company A has a higher expected return than Company B. • Company A has a lower standard deviation of returns than Company B. • Company A has a higher beta than Company B. Given this information, which of the following statements is CORRECT? a. Company A has a higher coefficient of variation than Company B. b. Company A’s returns will be negative when Company B’s returns are positive....
Polk Software Inc. has a quick ratio of 2.00x, $32,850 in cash, $18,250 in accounts receivable,...
Polk Software Inc. has a quick ratio of 2.00x, $32,850 in cash, $18,250 in accounts receivable, some inventory, total current assets of $73,000, and total current liabilities of $25,550. The company reported annual cost of goods sold of $100,000 in the most recent annual report. Over the past year, how often did Polk Software Inc. sell and replace its inventory? 8.01 x 05.03 x 4.57 x 2.86 x The inventory turnover ratio across companies in the software industry is 5.03x....
Only need the D, compute the accounts payable turnover ratio 2. Moore Company has the following...
Only need the D, compute the
accounts payable turnover ratio
2. Moore Company has the following partial list of account balances at year-end: Accounts payable $1,500 Accounts receivable 4,600 Cost of goods sold 3,200 Cash 23,000 Taxes payable 10,000 Land 25,000 Notes payable (due in 6 months) 1,000 Salaries payable 900 Inventory 4,300 Requirements: A. Compute the quick ratio. B. Determine the amount of working capital. C. Assume that cash is used to pay the balance due on accounts payable....
QUESTION 21 Hulkster Company has a receivables turnover ratio of 5.00 for the year 2020. Which of the O Investors may wish to see Hulkster decrease this ratio because a lower turnover como All of these statement are true. Extending more lenient credit terms to customers will decrease the receivables turnover to be sales. O Hulkster's average accounts receivable balance was collected 5 times during the year. QUESTION 22 the statement of cash flows, operating cash outflows would include: purchases...
15. Company A has a cash ratio of 0.25 and Company B has a cash ratio of 0.72. Also, company A's stock is traded at an average daily volume of 100 million shares and with a bid-ask spread of 1 cent. Company B's stock is traded at an average daily volume of 5 million shares and with a bid-ask spread of 5 cents. Which of the following is most likely to be true? A) Company A is stock is more...
Polk Software Inc. has a quick ratio of 2.00x, $32,850 in cash, $18,250 in accounts receivable, some inventory, total current assets of $73,000, and total current liabilities of $25,550. The company reported annual cost of goods sold of $100,000 in the most recent annual report. Over the past year, how often did Polk Software Inc. sell and replace its inventory? 8.01 x 05.03 x 4.57 x 2.86 x The inventory turnover ratio across companies in the software industry is 5.03x....
Only need the D, compute the
accounts payable turnover ratio
2. Moore Company has the following partial list of account balances at year-end: Accounts payable $1,500 Accounts receivable 4,600 Cost of goods sold 3,200 Cash 23,000 Taxes payable 10,000 Land 25,000 Notes payable (due in 6 months) 1,000 Salaries payable 900 Inventory 4,300 Requirements: A. Compute the quick ratio. B. Determine the amount of working capital. C. Assume that cash is used to pay the balance due on accounts payable....
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