A Firm Has Net Working Capital of $400, Net Fixed

question 32

Multiple Choice

A firm has net working capital of $400, net fixed assets of $2,400, sales of $6,000, and current liabilities of $800.How many dollars worth of sales are generated from every $1 in total assets?

• A)$1.33
• B)$1.67
• C)$1.88
• D)$2.33
• E)$2.50

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Definitions:

Rate of Sales Growth

The increase in sales over a specific period of time, typically measured as a percentage.

Per Month

A term indicating a frequency or rate that applies to each month.

Each Quarter

A period of three months used in financial and business reporting.

Per Month

A term indicating the occurrence or measurement of something on a monthly basis.