Reference no: EM133004373
Problem 1: Johhny's Apple Seed company's receivables turnover ratio has gone from 4.5x to 13.5x. What does this mean?
Group of answer choices
Option 1: The company will collect 13.5x more money this year than it did last year.
Option 2: The company is slower at collecting money that is used to be.
Option 3: This ratio means that the company's prices have gone up.
Option 4: The company is collecting money more quickly than it used to.
Problem 2: Javier has noticed that his company's Debt to Total Assets Ratio has increased from .25 a year ago to .65 today. What does this mean?
Group of answer choices
Option 1: The company is carrying more debt relative to its total assets this year than last year.
Option 2: It means the company is selling its inventory slower than it did a year ago.
Option 3: The company is carrying less debt relative to its total assets this year than last year.
Option 4: It means that the company is not collecting its money as quickly as it was a year ago.