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Author Question: A total asset turnover of .9 means that every (Read 29 times)

olgamartinez04

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on: Mar 29, 2022

Question 1

A lending institution would prefer that a firm have a ________ debt-equity ratio and a ________ times interest earned ratio.
◦ higher; higher
◦ higher; lower
◦ lower; higher
◦ lower; lower

Question 2

A total asset turnover of .9 means that every
◦ $1 in sales is supported by $9.00 of assets.
◦ $0.90 in assets produces $1 in net earnings.
◦ $1 in total assets is replaced on average every .9 years.
◦ $1 in assets produces $0.90 in sales.
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Marked as best answer by olgamartinez04 on Mar 29, 2022

KobyRhoads

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Reply #1 on: Mar 29, 2022
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olgamartinez04

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review

Bigfoot1984

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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