When analyzing company debt-to-equity ratio

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Reference no: EM131599839

1. When analyzing a company’s debt-to-equity ratio, if the ratio has a value that is greater than 1, then the company has:

Less debt than equity

More debt than equity

Equal amounts of debt and equity

None of these are correct

2. Schuester Company has $40,000 in current liabilities, $20,000 in cash, and $25,000 in short-term investments. What is Schuester’s cash ratio?

1.125

0.889

1.6

0.625

Reference no: EM131599839

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