Quiz Ch 03 – Impact of Decreasing Operating Costs on Financial Ratios
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
How will reducing operating costs impact financial ratios?
How will reducing operating costs impact financial ratios?
If Parsa’s Organics reduces its debt while keeping its equity and net income unchanged, which financial metric would decrease?
If a company has a debt-equity ratio of 1.0, what would be its total debt ratio?
The Floor Store maintained a constant cost per unit and selling price per unit over the past two years while increasing its sales quantity and keeping inventory levels steady. Which of the following financial ratios would be affected by this accomplishment?
What conclusion can be drawn about The Natural Pet’s financial performance, given that the company’s sales for 2020 and 2021 were $763,500 and $864,200, respectively, and its current accounts remained constant?