A Firm Has Net Working Capital of $600,net Fixed Assets

question 49

Multiple Choice

A firm has net working capital of $600,net fixed assets of $2,400,sales of $8,000,and current liabilities of $800. How many dollars worth of sales are generated from every $1 in total assets?

• A) $2.11
• B) $2.32
• C) $3.73
• D) $4.52
• E) $6.70

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Definitions:

Custodial Work

The cleaning, maintenance, and upkeep tasks performed to manage and maintain buildings and facilities.

Activity-Based Costing

A method of accounting that allocates costs to specific products or services based on the resources they consume.

Activity Rates

In activity-based costing, the costs assigned to goods and services based on the specific activities and resources that go into their production or delivery.

Activity Cost Pools

Aggregations of all the costs associated with a particular activity, used in activity-based costing.