TSI IncHas Enough Liquid Assets to Finance Its Operations for 67

question 59

Multiple Choice

TSI Inc.has enough liquid assets to finance its operations for 67 days and cash, marketable securities, and receivables totaling $1,000.TSI's average daily expenditures from operations are:

• A)$6.70
• B)$8.23
• C)$14.93
• D)$22.28 67 days = 1000/average daily expenditures

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Definitions:

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned through work.

Base Year

A specific year chosen as a point of reference for comparison over time in economic analysis.

CPI (Consumer Price Index)

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Real Wages

Wages that have been adjusted for inflation, reflecting the actual purchasing power of the income earned from work.