Stone Walls Has a Long-Term Debt Ratio of

question 14

Multiple Choice

Stone Walls has a long-term debt ratio of .6 and a current ratio of 1.2. Current liabilities are $800, sales are $7,800, the profit margin is 6.5 percent, and return on equity is 15.5 percent. What is the amount of the firm's net fixed assets?

• A) $8,880.15
• B) $8,017.43
• C) $7,666.67
• D) $5,848.15
• E) $8,977.43

---

Definitions:

Tax Tables

Charts used to determine the amount of tax owed based on income levels, provided by tax authorities for calculating liabilities.

Tax Rate Schedules

Charts or tables provided by tax authorities that outline the tax rates applicable to different income levels.

Tax Liability

The total amount of tax owed to a taxing authority by an individual, organization, or corporation.

Taxable Income

The portion of income used to calculate how much the taxpayer owes in taxes, including wages, salaries, bonuses, and other earnings after deductions and exemptions.