Milton Company Has Total Current Assets of $50,000, Including Inventory

question 125

Multiple Choice

Milton Company has total current assets of $50,000, including inventory of $12,500, and current liabilities of $26,000. The company's current ratio is:

• A)0.52.
• B)1.92.
• C)2.40.
• D)1.44.

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Definitions:

Mature Industries

Industries that have experienced long-term growth and are characterized by slow or no growth, stable revenues, and little innovation.

Auto Manufacturing

The process of producing vehicles through the combination of parts, components, and assembly techniques in a factory.

Asset Allocation

An investment strategy that spreads investments across various asset categories, such as stocks, bonds, and real estate, to manage risk and return.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.