The Finance Managers Collected the Following Information for Their Firm

question 34

Multiple Choice

The finance managers collected the following information for their firm: Total Assets = $60,000; Current Assets = $10,000; Long-term Liabilities = $100,000; Current Liabilities = $8000. What is the current ratio?

• A) 2.50
• B) 2.00
• C) 1.25
• D) 1.00

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Definitions:

Post-merger Cash Flows

The net cash inflows or outflows a company experiences following a merger or acquisition.

Operated Independently

Refers to entities or individuals carrying out activities or tasks without being directly controlled by another party.

Merger Activity

Refers to the process of combining two or more companies into a single entity, typically to achieve synergies, increase market share, or improve efficiency.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid over a specific period of time.