You Have the Following Information on Zip's Diner, Inc

question 40

Multiple Choice

You have the following information on Zip's Diner, Inc.: sales to working capital = 8 times, profit margin = 5 percent, net income available to common stockholders = $20 million, and current liabilities = $4 million. What is the firm's balance of current assets?

• A) $4.125m
• B) $6.5m
• C) $46m
• D) $54m

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Definitions:

Timely Fashion

Refers to completing tasks or responding within a reasonable or expected timeframe.

Competitive Retailing

The practice of offering goods in a retail market in a way that is competitive in terms of price, quality, and service.

Customer Service

The support companies offer to their customers before, during, and after purchasing or using their products or services.

Exclusive Distribution

Distribution strategy involving limited market coverage by a single retailer or wholesaler in a specific geographical territory.