Ortny Industries has an accounts receivable turnover ratio of 4.3. If Ortny has an accounts receivable balance of $90,000, what is Ortny's average daily credit sales?
A) $387,000
B) $1,548
C) $1,060
D) $3,521
A decrease in the return on equity ratio could be caused by an increase in
A) tax rate.
B) cost of goods sold.
C) total assets.
D) both B and C.
Spinnit, Limited has a debt ratio of .57, current liabilities of $14,000, and total assets of $70,000. What is the level of Spinnit, Limited's total liabilities?
A) $25,900
B) $24,600
C) $39,900
D) $53,900
Snort and Smiley Incorporated has a debt ratio of .42, noncurrent liabilities of $20,000, and total assets of $70,000. What is Snort and Smiley's level of current liabilities?
A) $8,400
B) $9,400
C) $12,340
D) $10,600
Lorna Dome, Inc. has an annual interest expense of $30,000. Lorna Dome's times-interest-earned ratio is 4.2. What is Lorna Dome's operating income?
A) $96,000
B) $57,000
C) $126,000
D) $57,600
