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Question 1 1. Choose the accurate formula to calculate the current ratio.
Question 2 2. Which ratios are considered baseline ratios?
Question 3 3. Which is true of baseline ratios?
Question 4 4. Last period, your company had a debt ratio of 0.6. This period, the debt ratio was 0.8. How would you interpret these results?
Question 5 5. What financial report tells you if the company suffered a loss or earned a profit?
Question 6 6. What financial report can help you figure out how well a company is managing its money?
Question 7 7. What is the balance sheet equation?
Question 8 8. The balance sheet is a part of which of the following?
Question 9 9. Choose the best answer as it relates to a baseline ratio.
Vandox Company Ltd is a company looking to secure a loan with a commercial bank.
The following details are available:
1. Interest expense = $58,000
2. Earnings = $215,000
3. Total liabilities = $143,000
4. Total assets = $450,000
5. Total equity = $29,000