The Following Balance Sheet and Income Statement Should Be Used

question 268

Multiple Choice

The following balance sheet and income statement should be used: Hilltop, Inc. is currently operating at 81 percent of capacity. What is the capital intensity ratio at full capacity?

• A) .87
• B) .90
• C) .93
• D) .96
• E) .99

---

Definitions:

Principal

The amount of money that is originally invested or loaned, prior to interest or profit.

Primarily Liable

Refers to the party in a financial transaction or contractual agreement who has the direct responsibility to perform or pay.

Instrument

A formal legal document that records a right, duty, or the execution of a transaction, such as contracts, deeds, and promissory notes.

UCC

Short for Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.