Question

Deer Park Tavern has the following ratios:

                                                                          2016             2017          2018

Current ratio                                                          1.28:1           1.40:1        2.02:1

Accounts receivable turnover                                  14 times       24 times     31 times

Food inventory turnover                                          22 times       28 times     32 times

Total liabilities to total equity                                   1.00:1           1.52:1         2.00:1

ROE                                                                      11.0%           14.23%       15.92%

Cash                                                                    $ 141,266     $ 153,750     $ 172,000

Times Interest Earned 3.2x             2.8x              2.5x

Annual revenue                                                    $1,880,000   $1,882,500   $1,892,300

Explain the 4 methods that the Federal Reserve uses to manage money supply in the U.S. economy.   (10pts)

10)   Explain the 3 Dow Jones Averages. How is the Dow Jones Industrial Average calculated daily? Explain why the Dow Jones Industrial Average is important to investors in the U.S. and around the world.       (10pts)

Answer 1