Using the Following Balance Sheet and Income Statement Data for Castillo

question 53

Multiple Choice

Using the following balance sheet and income statement data for Castillo Company what is the company's current ratio? $$\begin{array} { l r l r } \text { Current assets } & \$ 41,000 & \text { Net income } & \$ 48,000 \\\text { Current liabilities } & 22,000 & \text { Stockholders' equity } & 75,000 \\\text { Average assets } & 210,000 & \text { Total liabilities } & 125,000 \\\text { Total assets } & 200,000 & &\end{array}$$

• A)1:86: 1
• B)2 times
• C)186%
• D)54%

Understand the ethical considerations in research involving human and animal subjects.

Differentiate between experimental and control conditions in studies.

Grasp the importance of experimental control and the concept of variables in psychological research.

Appreciate the impact of culture on psychological research findings.

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Definitions:

Optimal Level

The most efficient, effective or desirable point or degree of an operation or process.

EBIT

stands for Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses.

Financial Leverage

The use of borrowed capital or debt to increase the potential return of an investment, amplifying both gains and losses.

Capital Structures

The mixture of debt and equity financing a company uses to fund its operations and growth.