Manufacturing firms are most likely to have a lower ___________ ratio than retailers a) accounts receivable turnover b)...

Question

Question

Manufacturing firms are most likely to have a lower ___________ ratio than retailers a) accounts receivable turnover b)...

Manufacturing firms are most likely to have a lower ___________ ratio than retailers

a) accounts receivable turnover

b) inventory turnover

c) return on total assets

d) none of the above

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Manufacturing firms are most likely to have a lower Inventory turnover ratio than retailers.

The answer is b.

Add a comment

Answer 2

Similar Homework Help Questions

which of the following events is most likely to increase the accounts receivable turnover rate? A)...

which of the following events is most likely to increase the accounts receivable turnover rate? A) a decrease in sales B) faster collection on accounts receivable C) an increase in sales D) slower collection of accounts receivable
For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover

Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (f) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.
Problem 3 Calculate the following information: 1. Quick ratio 2. Accounts receivable turnover ratio 3. Net...

Problem 3 Calculate the following information: 1. Quick ratio 2. Accounts receivable turnover ratio 3. Net return on total assets 4. Total liabilities to total assets ratio 5. Times interest earned ratio 6. Return on sales 7. Return on equity Sales: $750,000 Cash: $50,000 Inventory: $150,000 Common Stock: $100,000 Accounts Payable: $100,000 Prepaid expenses: $30,000 so, sou Long term debt: $200,000 Land and Building: $500,000 Operating Income: $450,000 Taxes: $200,000 Accounts Receivable: $70,000 Retained Earnings: $400,000 Cost of Sales: $300,000...

current ratio 2.292 and 2.555 (2015) quick ratio 1.55 and 1.722 (2015); accounts receivable turnover 40.76;...

current ratio 2.292 and 2.555 (2015) quick ratio 1.55 and 1.722 (2015); accounts receivable turnover 40.76; days sales outstanding 8.83; inventory turnover ratio 11.495 times; and average days to sell inventory; 31 debt to assets ratio 0.56 debt to equity = 1.30 interest coverage ratio = 141.66, plant assets to long term disabilities = 0.36 net margin ratio 0.30; asset turnover ratio = 12.9; return on investment = 3.88; return on equity 8.92% We were unable to transcribe this image12/31/2014...
5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the...

5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the higher a company's inventory turnover rate, the better. 7. All else being equal, a higher financial leverage will increase a company's debt rating and decrease the interest rate it must pay. 8. Vertical analysis examines changes in financial data across time. 9. A current ratio greater than 1.0 is generally desirable for a company. 10. Return on assets can be disaggregated into profit margin...
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...

Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5)...

Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin (7) Asset turnover (8) Return on assets (9) Return on common stockholders' equity (10) Debt to assets ratio (11) Times interest earned (12) Free cash flow Target 1.63 :1 8.6 times 42.0 days 6.6 times 55.3 days 3.8 % 1.5 times 5.6 % 17.1 % 66 % 6.5 times $3,656 Wal-Mart 0.87 :1 101.4 times 3.6 days 9.0...
Which financial statement ratio is an example of horizontal analysis? a. accounts receivable turnover b. return...

Which financial statement ratio is an example of horizontal analysis? a. accounts receivable turnover b. return on assets . c gross profit percentage Financial Statements that express only percentages are known as_____________________. a. Profitability Statements b. Uncommon Size Statements c. Common Size Statements
25. An acceleration in the collection of receivables will send to cause the accounts receivable turnover to

25. An acceleration in the collection of receivables will send to cause the accounts receivable turnover to A. Increase B. Decrease C. Remain the same D. Either increase or decrease 26. Which of the following ratios provides a measure that shows the margin of safety of bondholders and also gives an indication of the potential ability of a business to borrow additional funds on a long-term basis? A Asset turnover ratio. B. Number of days' sales in receivable. C. Return on stockholders' equity...

Which of the following would improve Liquidity: ( a ) Factoring a business’s Accounts Receivable (...

Which of the following would improve Liquidity: ( a ) Factoring a business’s Accounts Receivable ( b ) Using surplus cash to buy Land and Buildings ( c ) Paying all Accounts Payable sooner ( d ) Increasing employees wages ( e ) All of the above 2 If the Net Profit Ratio decreases, which of the following will NOT improve the ratio: ( a ) Increasing the sales price ( b ) Finding a cheaper supplier of your product...

Manufacturing firms are most likely to have a lower ___________ ratio than retailers a) accounts receivable turnover b)...

Homework Answers

Add Answer to:
Manufacturing firms are most likely to have a lower ___________ ratio than retailers a) accounts receivable turnover b)...

Post as a guest

Earn Coins

which of the following events is most likely to increase the accounts receivable turnover rate? A)...

For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover

Problem 3 Calculate the following information: 1. Quick ratio 2. Accounts receivable turnover ratio 3. Net...

current ratio 2.292 and 2.555 (2015) quick ratio 1.55 and 1.722 (2015); accounts receivable turnover 40.76;...

5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the...

PART A The accounts receivable turnover ratio Multiple Choice is not useful in determining changes in...

Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5)...

Which financial statement ratio is an example of horizontal analysis? a. accounts receivable turnover b. return...

25. An acceleration in the collection of receivables will send to cause the accounts receivable turnover to

Which of the following would improve Liquidity: ( a ) Factoring a business’s Accounts Receivable (...

Manufacturing firms are most likely to have a lower ___________ ratio than retailers a) accounts receivable turnover b)...

Homework Answers

Add Answer to: Manufacturing firms are most likely to have a lower ___________ ratio than retailers a) accounts receivable turnover b)...

Post as a guest

Earn Coins

Add Answer to:
Manufacturing firms are most likely to have a lower ___________ ratio than retailers a) accounts receivable turnover b)...