A Kingston Firm Has Net Working Capital of $2,580, Net

question 219

Multiple Choice

A Kingston firm has net working capital of $2,580, net fixed assets of $13,120, sales of $22,580, and current liabilities of $1,610. How many dollars' worth of sales are generated from every $1 in total assets?

• A) $1.27
• B) $1.30
• C) $1.67
• D) $1.72
• E) $1.75

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Definitions:

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States following the stock market crash of 1929.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.

Economic Recession

A period of significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Economic Expansion

A phase in the business cycle where an economy experiences growth in its GDP, income, and employment, leading to increased prosperity.