Mitchell Corporation Has Current Assets of $1,600,000 Million and Current

question 98

Multiple Choice

Mitchell Corporation has current assets of $1,600,000 million and current liabilities of $750,000.If they pay $350,000 of their accounts payable, what will their new current ratio be?

• A)3.1:1
• B)4.0:1
• C)1.5:1
• D)2.1:1

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Definitions:

Saving

The portion of income not spent on consumption but reserved for future use, often placed in banks, investments, or other financial instruments for growth.

Disposable Income

The money that remains for savings and expenses after income tax deductions from a person's or family's earnings is the disposable income.

APS

Average Propensity to Save, the proportion of total income that is saved by a household or economy.

Saving

The act of setting aside a portion of income for future use, typically in a bank account or other secure investment.