A Firm Has the Following Balance Sheet Information: Total Assets

question 44

Multiple Choice

A firm has the following balance sheet information: total assets = $100,000; current assets = $30,000; inventories = $10,000; cash = $5,000; total liabilities = $30,000; current liabilities = $15,000; and notes payable = $2,000. What is the firm's net-working-capital-to-total-assets ratio?

• A)0.11
• B)0.13
• C)0.15
• D)0.17

Understand the different forms of short-term borrowing in the government securities market.

Understand the impact of stock splits on value-weighted indexes.

Recognize the largest actively-traded stock indexes and their attributes.

Calculate after-tax rates of return for municipal and corporate bonds given specific tax brackets.

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Definitions:

Intercellular Spaces

Gaps or areas between the cells of plants or animals, allowing for the exchange of gases or the passage of nutrients.

Facilitated Diffusion

A process in which substances move across cell membranes with the help of carrier proteins, without the expenditure of energy.

Osmosis

The diffusion of water through a semipermeable membrane from a region of low solute concentration to a region of high solute concentration.

Simple Diffusion

The movement of molecules from an area of high concentration to an area of low concentration without the need for energy input, often across a permeable membrane.