Jeminson's Hardware Has Accounts Payable of $682, Inventory of $3,608

question 357

Multiple Choice

Jeminson's Hardware has accounts payable of $682, inventory of $3,608, cash of $340, fixed assets of $4,211, accounts receivable of $418, and long-term debt of $3,750. What is the value of the
Net working capital to total assets ratio?

• A) .29
• B) .37
• C) .43
• D) .47
• E) .56

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Definitions:

Perfect Competition

A theoretical market structure characterized by many buyers and sellers, homogenous products, and no barriers to entry or exit, leading to optimal distribution of resources.

Lose Customers

The consequence faced by a business when it fails to meet the needs or expectations of its consumers, leading to a decrease in its customer base.

Monopolistic Competition

A market structure characterized by many sellers offering differentiated products, leading to some degree of market power.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.