The current ratio is computed by dividing current liabilities by current assets.

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee’s annual FICA taxes amount is:

The evaluation of company performance and financial condition focuses solely on past performance.

The debt ratio of Jackson’s Shoes is .9 and the debt ratio of Billy’s Catering is 1.0. Based on this information, an investor can conclude:

The payment of cash dividends to shareholders is classified as a financing activity.

Refer to the following selected financial information from Growth, Inc. Compute the company’s times interest earned.        Interest expense $ 9,100 Income tax expense   22,700 Net income after tax   56,500

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

Annual cash dividends per share divided by market price per share is the:

The payment of cash dividends to shareholders is classified as a financing activity.

A company had average total assets of $3,216,000, total cash flows of $1,320,000, cash flows from operations of $554,000, and cash flows for plant assets of $850,000. The cash flow on total assets ratio equals: