Asked by
Wendy Licona
on Nov 09, 2024
Verified
In Scenario 8-2, after analyzing the debt ratio, you concluded that ______.
A) Denny has a problem because the number is so low
B) Denny has a higher risk factor than the industry
C) Denny has financed 43 percent of the assets with borrowed funds
D) Denny needs to be concerned about this ratio and increase it in the near future
Debt Ratio
A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.
- Analyze financial statements and ratios to assess business performance against industry standards.
- Recognize the importance of managing receivables and inventory for effective cash flow management.
Verified Answer
RW
Learning Objectives
- Analyze financial statements and ratios to assess business performance against industry standards.
- Recognize the importance of managing receivables and inventory for effective cash flow management.
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