Use the Following Information to Calculate Current Assets: Sales =

question 75

Multiple Choice

Use the following information to calculate current assets: sales = $12 million, capital intensity ratio = 4 times, debt ratio = 45 percent, and fixed asset turnover ratio = 2.5 times.

• A) $4.8m
• B) $21.6m
• C) $43.2m
• D) $48m

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Definitions:

Centerline

A reference line drawn on a graph or chart that represents the average, norm, or expected value of a set of data or a process control chart.

Process Capability Index

A measure used to quantify how well a process can meet specified output requirements.

Specification Limits

The bounds within which the values of a product, process, or service must lie to meet quality standards.

Proportion Of Defectives

The ratio or percentage of defective items in a batch or production process, indicating the quality or reliability of the manufacturing process.