-Megaframe's Debt to Asset Ratio Is:
A) 56

question 120

Multiple Choice

$\begin{array}{l}\text { LIABILITIES AND SHAREHOLDERS' EQUITY }\\\begin{array} { l r } \text { Accounts payable } & \$ 60,000 \\\text { Accrued expenses } & 40,000 \\\text { Long-term debt } & 130,000 \\\text { Common stock } & 80,000 \\\text { Retained earnings } & \underline { 100,000 } \\\text { Total Liabilities and Shareholders' Equity } & \underline { \$ 410,000 }\end{array}\end{array}$

-Megaframe's debt to asset ratio is:

• A) 56.1%.
• B) 75.61%.
• C) 80.49%.
• D) 90.62%

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a given market, determined by supply and demand.

Units

Measurements or quantities of a product or service.

Short-Run Costs

Costs that vary with the level of output in the short term, where at least one factor of production is fixed.

Profitable Level

The point at which a business or operation generates revenue that exceeds its costs, leading to profitability.