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Nelly Inc. reported net credit sales of $24,000,000 and cost of goods sold of $18,000,000 for the year. The average inventory for the year was $6,000,000.
-A supplier to a company would be most interested in the
A) asset turnover ratio.
B) profit margin ratio.
C) current ratio.
D) free cash flow.

Question

Quizplus · Accepted Answer

A supplier would be most interested in the current ratio as it indicates the company's ability to pay short-term obligations, which is crucial for assessing the likelihood of timely payments for supplies.

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