Engineering Economics
Liquidity ratios are used:

To compare short term obligations to short-term resources available to meet these obligations
To obtain much insight into the present cash solvency of the firm and the firm
To measure a firm’s ability to meet short-cut obligations
All of these

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Engineering Economics
Which one of the following definitions is correct?

The ratio of total debt to share holder's equity is called 'debt ratio'
The ratio debt-to-total assets is called Debt-to-total assets ratio
All of these
The ratio of earnings before interest and taxes for a particular reporting period to the amount of interest charges for the period is called interest coverage ratio

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Engineering Economics
A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

2712
2632
2.59
2890

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