Given the following information about Weber\'s Online Grocery, what is the quick

ID: 2764396 • Letter: G

Question

Given the following information about Weber's Online Grocery, what is the quick ratio?

0.74

0.26

0.48

0.91

Liquidity ratios indicate the degree to which a firm can ________.

satisfy its creditors in a timely fashion

generate sufficient profit from its assets finance its assets

produce adequate dividends

Given the following information about Weber's Online Grocery, what is the return on assets (ROA)

0.07%

7.65%

13.1%

14.7%

Financial ratios ________.

approach 1 if the results are promising

facilitate comparisons across time and distance

can be used as assumptions in preparing business plans, identify weaknesses, and facilitate comparisons

are not used by managers to understand the performance within their own firm .

When comparing ratios, remember that ________.

published peer groups and industry averages are scientifically derived

industry averages are a gold standard for performance

determining the firm's true peers can be challenging

accounting practices are uniform

Given the following information about Weber's Online Grocery, what is the debt ratio?

0.4862%
       34.21%
       2.06%
       48.3%

a)Quick Ratio = Cash + marketable securities+ accounts receivable/Current Liabilities

= $3,058 + 0+$5,582/$11,609 = 0.74

b) Return on Assets = Net Income/ Total Assets

= $4,827/$63,540 = 0.0759 or 7.6%

c) Debt Ratio = Total Liabilities/Total Assets [Total Liabilities = $63,540-$28,845-$,001

= $30,694]

= $30,694/$63,540

= 0.4830 or 48.3%

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