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  3. assume a supplier requires payment within 15 days.

Assume a supplier requires payment within 15 days. when granting credit, the supplier should be...

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Question

Accounting

Assume a supplier requires payment within 15 days. when granting credit, the supplier should be most concerned with which one of the following rations?

A. cash

b. Current

c. Debt equity

d. Net profit margin

e. Return of Assets

2. Doms Custom Draperies has a fixed asset turnover rate of 1.13 and a total asset turnover rate of .94. Its competitors, Window Fashion, have a fixed asset turnover rate of 1.26 and a total asset turnover rate of. 91. Both companies have similar operations. Based on this information, Doms must be _____ than Window Fashion.

a. Utilizing its fixed asset more efficiently

b. utilizing its total assets more efficiently

c. Gathering net profits more efficiently

d. gathering ner profits less efficiently

e. utilizing greater financial leverage

3. mortgage lenders probably have the most interest in the ______ rations.

a. Return on asset and net profit margin

b. long term debt and interest earned

c. price earning and debt-equity

d. market to book and times interest earned

d. return on equity and price earning

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