Mitchell Corporation Has Current Assets of $1600000 and Current Liabilities

question 40

Multiple Choice

Mitchell Corporation has current assets of $1600000 and current liabilities of $750000.If they issue $200000 of new stock what will their new current ratio be?

• A)2.4:1
• B)1.9:1
• C)1.7:1
• D)2.13:1

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Definitions:

Specified Sales Quotas

Set amounts of sales that a salesperson or team is aimed to achieve within a certain time frame.

Breach

The act of violating a law, agreement, or code of conduct, often resulting in legal consequences.

Duty of Honesty and Fidelity

An ethical obligation requiring individuals, especially employees or agents, to act truthfully and loyally towards their employers or principals.

Notice-And-Cure Provision

A contractual clause that allows a party in breach of the contract to fix (cure) the breach within a specified time after receiving notice.