Ansfield, Inc

question 8

Multiple Choice

Ansfield, Inc. has several potentially reportable segments. The following financial information has been determined for the current fiscal year: For Ansfield, Inc. to report a significant portion of its financial information as segments, its segments, in total, must represent

• A)$37,500,000 in assets.
• B)$6,000,000 in revenues.
• C)$1,125,000 in operating income before taxes.
• D)The answer cannot be determined from the information given.

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Definitions:

Discount Rate

The discount rate that adjusts future cash flows to present value, accounting for the time value of money and associated risks.

Net Present Value

A financial metric that estimates the profitability of an investment, calculated by summing the present values of expected future cash flows and subtracting the initial investment cost.

Delivery Van

A type of vehicle used for transporting goods, products, or materials from one location to another.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity and ability to finance day-to-day operations.